Sunday, May 8, 2016

Uber Pop, taxis and Adam Smith – Formiche.net

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Francesco Pontelli , an economist strategic marketing expert and market dynamics, I wrote: “Dear Ruggeri, Uber Pop alles gut? It is clear that innovation is unstoppable, especially if any brings a benefit to the consumer. So in a context of economic crisis the inclusion of Uber App (a new mobility service that reduces by about 1/3 the cost of a journey than normal) was a novelty. Beyond the immediate benefits for the user it is also necessary to evaluate the type of work and therefore of economic development that would ensure Uber, certainly not in order to osteggiarla, but to offer an economic framework in the medium term, including side effects. Uber Pop does not invest in capital goods, see the contract mediated Ltd. Raiser Operations . This alone demonstrates the speculative approach, the classic of the financial economy. Raiser Operations serves only to conclude the contracts with the drivers, the driver is a true “independent contractor with a valid driver’s license or license. So it’s the driver to respond to any eventuality and not just Uber, which does not allocate any own financial resource for investment in capital goods, let alone in the training of personnel. “

” In this context, the convenience the rates charged by Uber Pop customer becomes genuinely marginal in comparison to the contribution margin for the company itself. It should also be noted that at the same time it proceeds to annul a profession such as the taxi driver. This process is only the beginning of a series of job sharing the scope of which will be included when you touch other professions. Where you live we will establish this application two parallel economic developments. First, an impoverishment of workers who have invested a fortune in licensing and in half. Second: a broadening base of consumers thanks to the integration of income will benefit from greater economic availability. Finally the consumer that will see reduced transport fares, and they take delight until the competition will not come to their own professional sector. But this repositioning process does not involve any growth in the economy. I remember the postulate that said “in marketing if you accept the price battle you lost at the start.” A principle forgotten by many economists who see the only competition the factor of economic development. Bloomberg has published a study which shows that 82% of US consumers are in favor of paying a higher price for a product of the national chain. A reversal of consumer sensitivity also in services. Oppose technological innovation expresses an anachronistic attitude but at the same time embrace it without identifying the scenarios in the medium term is an unpardonable shortsightedness. “

Dear Pontelli, I appreciate his contribution as a scholar on the subject, let me just an aside: we are first of all citizens, then much, much later, of consumers. On Uber Pop I wrote a lot, here I will only point out how strange this business model. Uber, which owns a trivial app, does it? No investment, except for lobbying (I have a pretty good idea of ​​how to translate it into Italian), forces the driver to pay him 20% of revenues, if he agrees I can even consider it an idiocy, but it is a relationship between private individuals.

However, the activity no, it’s a public service. If one decides to become a taxi driver, if it respects the law and health regulations imposed on taxi drivers, if it is certified, if it pays taxes like taxi drivers, if its income statement holds to the levy of 20% of Uber, if you accept the prices Uber, nothing to say, entirely legitimate. To avoid the tricks, you might make a practical proposal for the government Renzi, as it seems is about to legislate.

“Uber Agency sends monthly revenue monthly fees for racing made (Revenue) . In its review it will be sufficient to compare the amounts declared by those received via account statements of credit cards. Uber will make his annual tax return in which declare the profits (monthly fees already submitted to the Agency less the costs incurred to be proven). Uber will pay the driver operating a withholding tax of 20% (current rate, no minimum roof) on the agreed fee, so the driver will receive 60% of the race. Each year transmit to each driver’s unique certification which attest the annual compensation paid and the withholding withheld. As with all other companies will make the Annual Statement 770 declaring the fees paid to drivers (identified with the tax code) and withholdings. Each of them in the tax return will bring back the compensation paid on the basis of single certification by unbundling withholdings. The Agency will make the positions on tax checks to see if the drivers said the fees received from Uber. This verification is simple as on the basis of 770 which shows the tax codes for each driver can check whether he has made the declaration and has added that income.

In fairness taxi drivers should go to the analytical method , for example to install a device on the car that periodically transmits the fees for the races made to the Agency. The subject would be taxed on the basis of the actual amounts transferred less the costs incurred, so the income would no longer flat but effective. Always in equity the state will pay the old licenses to taxi drivers, since, in the name of the market, it has written off the value. “

In conclusion, we are talking about a curious statement of income of self-employed, said driver: if he applies the prices Uber (30% less than the present, joy!), although receiving only 60% of stroke (20% to Uber, 20% to the State), are unable to pay all costs, take all responsibility towards customers, enforce laws, and makes money as well, it is to be admired, certainly not to fight. I keep wondering, how can this game stand without a couple of fiscal-legislative tricks? In any case, I refuse to believe that Adam Smith would never lobbyist for Uber Pop.

(Published in Italy Today, newspaper directed by Pierluigi Magnaschi)

last modified: 2016-05-08T07: 00: 55 + 00: 00 from Riccardo Ruggeri

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