Transportation in the news

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Uber and Lyft take a lot more from drivers than they say

In July, an Uber driver picked up a fare in a trendy neighborhood of a major U.S. metropolitan area. It was rush hour and surge pricing was in effect due to increased demand, meaning that Dave would be paid almost twice the regular fare. Even though the trip was only five miles, it lasted for more than half an hour because his passengers scheduled a stop at Taco Bell for dinner. Dave knew sitting at the restaurant waiting for his fares would cost him money; he was earning only 21 cents a minute when the meter was running, compared to 60 cents per mile. With surge pricing in effect, it would be far more lucrative to keep moving and picking up new fares than sitting in a parking lot. But Dave had no real choice but to wait. The passenger had requested the stop through the app, so refusing to make it would have been contentious both with the customer and with Uber. There’s widespread belief among drivers that the Uber algorithm punishes drivers for cancelling trips. Ultimately, the rider paid $65 for the half-hour trip. But Dave made only $15. Uber kept the rest, more than 75 percent of the fare, more than triple the average so-called “take-rate” it claims in financial reports with the Securities and Exchange Commission. This, according to Wayne State University law professor Sanjuka Paul, who has written extensively on the ride-hailing industry, is a new wrinkle in the independent contractor debate, because it doesn’t align with the arguments the companies make that they merely facilitate interactions between two independent actors in a market. “The economic reality is they, Uber and Lyft, are collecting the fare from the consumer and then making a capital firm decision which, in this case, doesn’t sound like a very bad decision— actually making quite a sensible decision,” she said. “But it shows that they are a firm that is charging consumers and then making decisions with that money, including how to pay a labor force.”
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Michigan Mobility Institute begins crafting curriculum in partnership with Wayne State

Michigan Mobility Institute executive director Jessica Robinson says the process of creating a first-of-its-kind Master of Mobility degree is "well underway," thanks to the institute's new partnership with Wayne State University. The institute made headlines earlier this year when it announced its intention to create the high-level educational credential in mobility. Robinson says Wayne State's College of Engineering was an ideal inaugural educational partner to collaborate with in creating the coursework and formal structure for the degree. Wayne State's existing dual focus on both cutting-edge research work and connecting its grads to jobs in the field also is a plus. WSU professors are already working on classes that are applicable to next-generation mobility careers, which will form an important base upon which to build a regimen of highly specialized mobility coursework. Wayne State will provide the Michigan Mobility Institute's physical campus for the time being. Other space needs may arise with time, and if they do Robinson says the institute will work with WSU and other partners to create them.
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Michigan Mobility Institute, Wayne State partner on advanced mobility curriculum

The Michigan Mobility Institute announced the world’s first advanced mobility education curriculum for the sector Tuesday in partnership with Wayne State University’s College of Engineering. The organizations said in a joint Tuesday announcement that they’ll begin developing programming to power mobility careers in the months ahead. Kim Trent, chair of the Wayne State University Board of Governors, said in a statement that the partnership with the Michigan Mobility Institute could help extend Detroit’s 100 years of history in mobility innovation into the 21st century and beyond. “I couldn’t be more thrilled that the futurists behind the Detroit Mobility Lab and the Michigan Mobility Institute have chosen Wayne State as their partner. This Institute will make our university a world leading center for cutting-edge thinking and leadership for this critically important emerging sector.” Wayne State’s College of Engineering offers a graduate certificate in cyberphysical systems, a program in electric drive vehicle engineering and a newly developed master of science degree in data science and business analytics. “Together we are poised to create something very special as we embark on a shared mission to create the premiere institution focused on educating the mobility engineer of the future,” Farshad Fotouhi, dean of the College of Engineering and computer science professor said.