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Comment by PatientTrades | Hacker News Reader

The author is not telling the whole story. Uber still gets their cut of each ride, the initial $115 is simply used as a hedge or insurance. If a driver doesn't make above the $349 for the week than the $115 is returned to the driver. Uber doesn't simply pocket it. If a driver makes over $349 for the week, they get the %33 surge, and Uber will keep the initial $115.

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Due to the wording of

"As long as your weekly earnings exceed $349 you'll come out ahead!"

I believe you're incorrect or trying to mislead. That sentence implies that there's a strong possibility people can come out "not ahead" or, specifically, lose potential income on the arrangement.

or break even?

Do you have a source? The screenshot from Uber itself indicates otherwise.

Why would they offer this rather than just an "Hey! it's going to be a busy weekend and we want extra cars on the road. Earn $349 and get paid 33% extra" promo? There's no need to take the $115 if the driver can't lose. Let's not pretend that Uber needs the $115 for cashflow purposes.

Maybe they do need the cash.

That’s even scarier.

I think the previous commenter is incorrect based on the wording shown in the article. That said, since this is part of a study, it does seem somewhat plausible that they'd do an offer like that just to see what the psychological impact was.

You are misreading he plain meaning of the words. Your interpretation also makes zero sense. How is it a hedge if Uber gives it back on failure to break even?

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