# Referrals = Ponzi Scheme



## Driver8 (Jul 29, 2014)

So this new note I received claims I'll earn 10% of the fares of anyone I refer, for their first 30 days as a driver. 

How is this legal?


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## Txchick (Nov 25, 2014)

Driver8 said:


> So this new note I received claims I'll earn 10% of the fares of anyone I refer, for their first 30 days as a driver.
> 
> How is this legal?


Never heard of this referral from Uber. mmmmmm!


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## UberXTampa (Nov 20, 2014)

Driver8 said:


> So this new note I received claims I'll earn 10% of the fares of anyone I refer, for their first 30 days as a driver.
> 
> How is this legal?


They are certain that the 10% is not going to amount anything.


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## Andy1234 (Jan 3, 2015)

Ponzi is not the correct term. Its a MLM or Multi Level Marketing tactic. MLMs are very similar to Pyramid Schemes and the two are sometimes used interchangeably, but in Fact they are different. All Pyramids are MLMs, but not all MLMs are Pyramids. They become illegal when the primary means of compensation comes from the recruitment of new members. In the case of Uber and Lyft referral bonus programs the main source of income is from driving and not dependent on recruitment. So therefore its is completely legal.


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## elelegido (Sep 24, 2014)

Driver8 said:


> So this new note I received claims I'll earn 10% of the fares of anyone I refer, for their first 30 days as a driver.
> 
> How is this legal?


Because it is not illegal. Therefore it is legal.

The referral system us in no way a Ponzi scheme. One of the requirements for a scheme to be classified as such is that the new entrant pays to join the scheme. Joining Uber as a driver does not involve payment to Uber. So it's not a Ponzi or pyramid. Case closed.


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## uber_sea (Jan 9, 2015)

Are they paying 10% of gross or net? My guess is on net.


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## Amsoil Uber Connect (Jan 14, 2015)

Why is it I feel a need to press 1 for English. 

What is this "Note" you speak of?


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## UberHammer (Dec 5, 2014)

Andy1234 said:


> Ponzi is not the correct term. Its a MLM or Multi Level Marketing tactic. MLMs are very similar to Pyramid Schemes and the two are sometimes used interchangeably, but in Fact they are different. All Pyramids are MLMs, but not all MLMs are Pyramids. * They become illegal when the primary means of compensation comes from the recruitment of new members. *In the case of Uber and Lyft referral bonus programs the main source of income is from driving and not dependent on recruitment. So therefore its is completely legal.


At these rates, this is already true of Uber.


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## elelegido (Sep 24, 2014)

Amsoil Uber Connect said:


> Why is it I feel a need to press 1 for English.
> 
> What is this "Note" you speak of?


Seriously? You don't get this?

Press 1 for: it was an email from Uber
Press 2 for: it was a text message from Uber


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## Amsoil Uber Connect (Jan 14, 2015)

Of course I do.


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