Some Uber Drivers Are Not Uber Happy

Christian Science Monitor: “Harry Campbell, author of The Rideshare Guy, a popular blog for rideshare drivers, asked his 10,234 e-mail subscribers to rate their experience with Uber. Of the 453 who responded, only 48 percent are happy with their employer.”

“A common perception of the difference between Uber and Lyft is that Lyft is a better company to work for, but Uber brings in higher pay. But Uber’s claim to fame among drivers – that it offers the highest wages in the game – is slowly eroding. To increase business during the slow winter months, Uber recently cut fares for passengers, and thus salaries for drivers, in over 100 cities.”

Some drivers say “weekly expenses like gas, toll fees, insurance and car maintenance detract the company’s impressive averages. In a company report last year, 11 percent of drivers said they actually lost money after being their employment with Uber.”

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Relativity is a Poor Theory at Retail

The New York Times: “In some ways, what we experience as consumers is like what we experience when we listen to music or lift a heavy object. For example, we are more likely to notice that a drumbeat is loud if we have been listening to, say, a gentle violin. And we will notice that we are lifting extra pounds if they are added to a lightly packed suitcase. The same additional weight is barely noticeable in a heavy one. Vision, heat perception, smell and taste all obey a similar law: Perception is largely a relative mechanism.”

This dynamic manifests itself when we compare prices: “We tend to focus on the percentage rather than the amount we save, and fall prey to a mental illusion. After all, when your shopping is done, it is dollars — not percentages — that will be in your bank account … Ofer H. Azar, an economist at Ben-Gurion University in Israel, asked consumers in the United States how much they needed to save to justify spending an extra 20 minutes … When shopping for a $10 pen, they required only a $3.75 savings, on average. For a $30,000 car, though, they needed $277.83 for that 20 minutes.”

Less affluent shoppers are less likely to fall prey to the illusion: “Poorer people tend to value a dollar more consistently, irrespective of the context. It is not simply that those with less money pinch more pennies; it is that they are compelled to value those pennies in absolute rather than relative terms … To them, a dollar has real tangible value. A dollar saved is a dollar to be spent elsewhere, not merely a piece of token accounting.”

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Quote of the Day: Ildiko Szalai

“Traditionally, men’s path to purchase has been more linear than women’s, adopting a more utilitarian approach, considering all options rationally and weighing up alternatives based on price and quality. As men become more concerned about how they look, what they wear and products they use, their decision-making is beginning to imitate women’s.” ~ Ildiko Szalai, senior analyst of Beauty and Personal Care, Euromonitor, quoted in The Wall Street Journal.

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Quote of the Day: Benjamin Friedman

“On the whole, the problem with new books is that there’s a list price set by the publisher and a discount price that’s also set by the publisher. So, as a new bookseller, you have no control over what the book sells for or what you pay for it. With used books, if you’re smart, you find ways to get them cheap, and you decide what you price them at.”

“As a general rule, on any book, a used bookseller is probably making twice as much profit as a new bookseller. And that’s the difference between making it and not making it, because the profit margins on new books are razor-thin. At a used bookstore, no one is getting rich, but you can make enough to stay alive.” – Benjamin Friedman, co-founder, Topos Bookstore Café, as quoted by The Awl.

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Whole Foods: New Limits on Local Store Autonomy

The Wall Street Journal: “Whole Foods is shifting more responsibility for buying packaged foods, detergents and other nonperishable items for the more than 430 stores to its Austin, Texas, headquarters. It is deploying software to simplify labor-intensive tasks like scheduling staff and replenishing shelves … The measures are part of a broader push to beat back competition from retailers such as Kroger Co. and Costco Wholesale Corp. that have expanded their range of natural and organic products, and frequently offer them at lower prices.”

Co-CEO John Mackey: “We want to evolve the structure in such a way that we take out redundancy and waste, and at the same time though, we’re not diminishing the culture, the empowerment efforts that make Whole Foods Market special.”

“The relative autonomy Whole Foods has long granted its stores and regional units—now 12—reflects a bedrock principle of Mr. Mackey, who helped open the first Whole Foods in 1980 … The model worked well for Whole Foods for years as it grew rapidly and established itself as the leading retailer of natural and organic groceries … But the need to offer more competitive prices is stepping up the pressure for greater efficiency.”

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The Fallacy of Data vs. Intuition

In a Wall Street Journal interview, Hilary Mason of Fast Forward Labs illuminates the relationship between data and intuition:

“One of the common fallacies is that data is opposed to intuition. Data is a tool for enhancing intuition. When I worked at the social-media company, one day the CMO of a frozen-breakfast-sausage brand came into our office. The guy said, ‘I want to know what may customers do on the social web.’ And I said, ‘Great. So first we’ll figure out who your customers are.’ He said, ‘I know who my customers are. They’re moms in the Midwest.’ I said, ‘How do you know?’ He looked at me like I was crazy. He said, ‘They’re my customers. I’ve been doing this for years.'”

“He was not wrong. He had many customers. We didn’t know if they were moms, but they were looking at mom-type things. They were in the Midwest. But he missed a cluster of customers in Texas, and they were into motorcycles and man things. He missed a cluster in the Northwest who were anti food additives [who liked his product because it] did not have these additives. We were able to show that his intuition was in no way wrong. But he was missing things that were too small to come up on his human radar.”

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