Thursday, January 28, 2016

Uber should decrease their commission during Winter Slump

This Winter slump is impacting driver earnings. How much longer can drivers last with reduced fares and slow business? Although the Super Bowl is going to be played in Santa Clara, this doesn't change the fact that fares are at their lowest ever. Uber drivers will complete cheaper rides and increase the number of trips to make the same amount of money. 

Surge pricing is no longer appealing. It doesn't last long enough to increase fares to good prices. Uber never asked drivers if they want fares to be reduced to stimulate business. 

Why doesn't Uber reduce their commission cut? This move would show that drivers and Uber are in this current business decline together. Uber still manages to collect 25% from new drivers and 20% from older drivers. Meanwhile, Uber cuts the fares and holds unreliable guarantees to match earnings. 

Undercutting UberPool prices to record lows and charging ridiculously low prices for UberX are discouraging drivers to increase their production. Holding a Winter slump promotion hasn't helped drivers to match a percentage of past earnings. Uber implements too many loopholes to disqualify drivers. 

See the following methods Uber uses to disqualification drivers: 

Back-to-Back feature and technical issue with shutting app down reduced acceptance rate to 87% to disqualify driver. Overall acceptance rate for the week was 96%. Give drivers the freedom to take ride requests. Back-to-back feature is an ineffective feature that impacts most drivers. It also disables navigation in current trip. 

High acceptance rate is not enough to qualify driver for promotion. 

Slow period reduced trips per hour to disqualify driver

Uber didn't round up from 1.18 to 1.20 to qualify driver.  Driver missed by this hourly match by 1 trip.  It was slow on this night. The Uber driver still completed trips. A last minute airport ride decreased hourly trips per hour average.

As you can see, Uber is not matching earnings. They won't round up to qualify drivers. If back-to-back feature sends a ride request while on a trip, drivers must accept this to avoid disqualification. 87 percent can round up to 90 percent, whereas 1.18 can round up to 1.2.  

Feel you will miss the trips per hour? If business is slow, you may consider going offline. This driver missed the mark by .02 because they transported a client to SFO and this took 40 minutes. Moreover, their clients were not as the right locations and often took longer than expected to enter their ride. 

Overall weekly numbers would have qualified this driver for all promotional hours. However, this driver lost out in three time slots, where acceptance rate and trips per hour disqualified them. 

Uber introduced Winter slump promotion to increase trips and increase earnings. Drivers are not earning more taking a higher number of minimum fares. At $5.35, a driver only receive $3.20. Short airport trips of 6 miles and less pay $4-7 after fees. 

If Uber reduced their commission during this slow period, drivers would respect them more. Poor promotional requirements, slow business, back-to-back feature, clients, and other factors affect overall driver earnings.