Uber continues to grow in Switzerland despite obstacles specific to our market

Uber continues to grow in Switzerland despite obstacles specific to our market

Friday, 11.10.2019

Sophie Marenne

Steve Salom. Managing Director of Uber in Switzerland, France and Austria. Employing about twenty people in Switzerland, Uber is present in four cities in the country: Geneva, Lausanne, Basel and Zurich. (Keystone)

A "net" monthly income of around 4665 francs is what a driver who works full-time for Uber, according to the figures of the last twelve months, supposedly earns. For the first time, the number one chauffeur-driven car (VTC) revealed the average income of freelancers traveling with its platform in Switzerland. This figure is 26.81 francs per hour, after the deduction of service charges claimed by the application. "This income is not perceived by actual shopping time but by time of connection to the portal, that is to say, also during the wait times," says Steve Salom, Uber CEO in Switzerland, France and Austria. Still, by counting the various costs – vehicle price, fuel and insurance as well as four weeks of annual vacation – Uber estimates that this net hourly income drops to 21 francs per hour.

To this amount are added tips, approximately 500 francs over one year, on average, per driver. Since the introduction of this feature in October 2018, a total of 1.6 million has been released, paid directly to the 3200 active drivers who make up the Uber cluster within the borders of the Confederation.

Drivers do not dream of a contract

Note that this monthly income is extremely hypothetical since 70% of drivers connect to the application less than 40 hours per week. A quarter of them do not even connect 10 hours a week. "They do not usually use our service as a full-time job," insists the one who launched Uber in Switzerland more than five years ago. "These drivers appreciate the independence our system gives. According to a Link study, a contract of employment would not interest 75% of them. The principle that wage labor represents security and independence equals precariousness is a simplistic and ideological shortcut that does not reflect their reality. "

For Steve Salom, Uber's partners want flexibility: choose their working hours, refuse shopping and, if they wish, stop working without having to notify any employer. "If one of them decides not to log in for three months, we will not even know it. At no time do we oblige them to a minimum benefit. I know few companies in the world in this case! "Another figure revealed by the California Colossus: drivers use this tool for 60% of the year, or for 33 weeks per year.

Problematic Geneva situation

Uber is present in four cities in the country where the firm has a small office: Geneva, Lausanne, Basel and Zurich. Last year at the same time, it had 300,000 users in Switzerland. Today, they are 400,000, or 33% more. "Our growth in the Swiss market is strong but the complexity of the procedure to become a driver is a brake," he says.

While Zurich is satisfied with federal regulations, Geneva adds an additional layer of bonds. It is the canton in which Uber operates where there are the most barriers before being able to launch. In addition, the Department of Safety, Employment and Health (DSES) and its Minister Mauro Poggia wish, since last winter, requaler Uber of the name transport company. As a result, the company should pay social charges to the partner drivers.

However, according to the law of 2016 on taxis and cars with driver (LTVTC), the multinational is a distributor of races. "This status was created specifically for our type of activity linking supply and demand on the move," says Steve Salom.

For the moment, the American company is awaiting the decision of the Genevan executive. "We hope not to have to go to court and find a solution together." Do these difficulties call into question its presence on the territory of the canton? "Our model is simply not compatible with the definition of a transport company," says the manager.

Less and less competition

Since late September, the American colossus reigns on the French-speaking market, competing with only a few local players, such as Lymo or Driven. The French operator Kapten has indeed left the cantons of Geneva and Vaud, citing precisely the many regulatory obstacles, after only a few months of activity. "It's a real shame for this region as it deprives both drivers and users of more choice. Less competition means less quality of service. It's even a bad signal, "says the director general. The VTC company, formerly called Chauffeur Privé, is Uber's biggest competitor in France.

Employing about twenty people in Switzerland, the San Francisco company would like to expand in other cities of the country in the future. But this development is hampered by the regulatory complexity of the country which does not display a uniform framework.

Do not be "uberised" in turn

Entering the stock market in the spring, the world leader in VTC has seen its title being hurt since then, posting a very high volatility. "Note that we are still growing strongly and investing heavily in R & D so that we do not" disrupt "in our turn," says Steve Salom. Passenger transport by drone or autonomous car are all innovations on which the teams are working, especially in the United States and France.

Chauffeurs better framed

At the global level, new features for drivers should appear soon, such as a loyalty program. At the Swiss level, the future will be the deployment of a revenue simulator based on schedules and vehicles. The goal: to allow future drivers to know what to expect before taking the plunge.

Since May, the Swiss entity also offers free insurance coverage to its drivers, in partnership with AXA. "This protection is immediate from the first kilometer with us. It covers sickness, accidents and maternity and paternity leave. "In addition, Uber offers auto insurance with Zurich Insurance. Flexible, it covers the driver in a professional way only for the kilometers traveled with the application, which saves him from having to make sure this way full time.

All mobility

In reality, Uber's aspirations go well beyond the scope of the VTC. In Switzerland, the firm has been offering meals for a year with Eats, but other innovative services are already in place elsewhere: renting bicycles and electric scooters in Paris with Jump or freight in Germany and the Netherlands with Freight . The ultimate goal: to become a mobility platform in the broad sense.