Tuesday, September 16, 2014

Uber gets 100% of $1 safe trips on UberX platform

Drivers were given $1 per trip, known as safe rides fee, as a compensation for increased commission. UberX drivers once paid out 5% commision during the Winter and Spring season, but then Uber increased their take to 20%.

Therefore, Uber implemented this $1 safe ride trip bonus to help offset the loss of earnings from this commission increase. However, Uber ended this $1 trip incentive on August 31, 2014. Nevertheless, Uber is keeping 100% of this amount.

Based on previous leaked data on tech websites, Uber drivers are completing nearly one million trips per week. Think about how much this $1 per safe ride fee is making Uber. Depending on how many UberX trips are completed per week, it is possible this $1 per trip safe rides fee will make Uber millions in revenue.

This safe rides fee resembles the baggage fee that earned airlines billions in revenue. Whereas gas prices are down, this fee remains in effect.

According to a Bloomberg article, Uber increased Uber Black commission to 25% and Uber SUV to 28%. This commission is up from the promised 20%. Now, UberX drivers are no longer receiving the $1 safe rides fee. Instead, Uber is collecting this $1 safe rides fee charged to riders and taken from drivers.