Tuesday, February 02, 2016

Uber refuses to lower their commission rate

During the Winter slump, Uber still deducts 20-25% commission out of driver earnings. Meanwhile, Uber cuts fare prices to impact their Partners. Perhaps, Uber believes their clients will increase usage. Instead of being patient with the Winter business decline, Uber may have jumped the gun to restore overall trips.

Uber still has yet to reduce their commission share. They still charge their UberX Partners 20-25% commission. They also take $1.35 from rider, show this in driver earnings, and then deduct the overall fee for safe ride cost. This kind of reminds us of the baggage fee airports charge their customers in response to fuel cost. With fuel cost reducing, airlines decided to keep baggage fees intact to increase their bottom line profit.

Uber refuses to introduce a tipping feature to help their drivers survive on the road. If drivers weren't so broke, they would assemble and protest this injustice. Uber statements about reducing prices to stimulate trips and increase driver earnings are a lie.

The following is the hourly earnings an Uber driver made before Uber fees. This will show a driver consistently making less every week between Christmas to this present time. Dropping fare prices resulted in reduced hourly earnings and overall payouts. What is inconsistent is that there is no reduction in top driver overall hourly pay, which hasn't changed in the last 5 weeks. These numbers can be fabricated because as this driver's pay has reduced the hourly for top drivers remain identical.

Drivers are requesting that Uber lowers their commission to help drivers. Uber drivers are earning much less, which is not reflected in top driver stats we can't verify.

Partners would feel confident of these price drops if they were used as a promotion. Instead of doing this, Uber dropped fares and put 75-80% of responsibility on drivers. Uber only accepts 20-25% of the price cut, because that is their commission. When fare prices are cut, drivers struggle the most.

If Uber maintains their commission, they don't lose out that much money dropping fares. Unless they cover drivers for this difference, such as what was done in Summer promotions a few years ago, drivers will make much less on rides. Minimum fare trips will plague them without learning of this until after the trip is completed. A 14 minute trip in the East Bay earned a driver $7.98. It took 30 minutes out of the driver's time. Minus commission and fees, this driver earned $5.

The next 11 months will determine the fate of ridesharing. If fares drop again, drivers will move on. Those who rely on Uber to survive may stick around if they use fuel efficient vehicles. Gas prices are another independent factor that can reduce the supply of vehicles and activate surge pricing.

Clients don't appreciate price cuts. If surge pricing is in effect, they will complain of steeper prices to get home. What they forget is that they are saving on trips in relation to prices before recent fare reductions. Clients make drivers wait long periods of time, but will request drivers to immediately end trips with them still occupying vehicles. This type of behavior doesn't make sense. They'll cost drivers valuable time to earn money, but will complain about a few pennies in time.

Uber can restore confidence in their driver pool by reducing their commission rate. Show Partners you understand the pain in making less money.