Wednesday, March 23, 2016

Uber is saving their drivers with new promotions

Thumbs up Uber! Finally, the past 4 weeks of trip incentives are saving your Uber drivers. Keep these incentives going, because your loyal drivers will keep building ridership.

For the past 4 weeks, Uber drivers who completed 100 trips received 20% of their fares. Completing 80 trips would kick back drivers 10% of all fares received. New Uber drivers pay 25% commission, whereas veteran Uber drivers shell out 20% of their fares. Essentially, veteran Uber drivers completing 100 trips would receive back the majority of their commission.

Trip incentives are the best way to reward drivers. As we know, Uber must make revenue to keep in operation. Their main sources of revenue are driver commission and booking fees. On the flip side, fundraising rounds give Uber access to a war chest of resources to recruit drivers and attract the best employees to keep the Uber app operable.

Uber drivers once earned a fortune in the early days. As competition arrived, the overall earnings went downhill. An UberX trip that once cost $35 from the outer Sunset and outer Richmond to downtown San Francisco dropped in price. Now, in present time, an Uber client can travel from Rodeo, California to downtown San Francisco for $35. Rodeo is located almost 30 miles away from San Francisco. In traffic, this trip could take greater than an hour to complete.

An Uber driver shared that he earned only $42 after completing a 70 minute trip from downtown San Jose to downtown San Francisco. In late 2013, Lyft paid their drivers $190 to complete this trip. A trip from Palo Alto to San Francisco once cost $90. This trip is now a fraction of the cost.

Drivers are losing money on close airport trips. Airports are almost receiving a higher share than drivers. On short airport rides, drivers are known to get $4 after all fees. Is this enough to drive a client and their luggage to local airports? Of course, not!

Drivers must make pickups, wait outside, and drive clients to the airport. Airport rides were once the cream of the crop. If possible, drivers would rather avoid taking these trips to protect their earnings. Close airport trips net drivers 50% and/or less of the total trip cost.

Aside from driving 15 hours to make the same amount as driving 5 hours a few years ago, drivers can still make reasonable money driving with Uber. These current trip incentives motivate drivers to take the road. If you review the past performance of drivers, you will see low earnings thus increasing to put drivers back on track.

It is important to keep drivers on the road, so demand is met with good service. No drivers, no Uber. No Uber, no convenience. If clients want, they can resort back to poor taxi service and pay much higher fares. Good luck catching a ride!

Uber remembers their drivers. Their previous incentives shortchanged East Bay drivers with extremely low hourly guarantees. A number of drivers only made minimum wage after all fees and commission were deducted from fares. Thankfully, Uber replaced these hourly guarantees with trip incentives. Uber drivers are completing performance-based trips to seek rewards. This is the best promotion to keep drivers happy.

As we saw, holiday promotions helped many Uber drivers during Thanksgiving and Christmas. Once Christmas ended, drivers fell back into their rut. Expecting San Francisco Uber drivers to complete 2.2 trips to lock-in $32-35 an hour can/will disqualify them since many clients are too slow to enter rides. So much waiting, so many mistakes with wrong addresses and pin drops, block these incentives.

The current promotion is best. It is rewarding Uber drivers the right way. They must complete X amount of trips to lock-in rewards. The best Uber drivers will complete 120+ trips to receive the top reward. As you know, exceeding 120+ trips will take some serious effort on the driver's part. These drivers deserve to receive these rewards for showing loyalty to a transportation technology company.

If drivers haven't engaged in any of these trip promotions, get on the road to achieve results. Although Uber drivers don't make nowhere near as much as a few years ago, they now have a prime opportunity to make decent rewards with the new promotion. With the launch of UberPool in the East Bay 3 weeks ago, Uber is investing resources to increase drivership and maintain ridership.

Uber is saving their drivers from sinking. Some drivers were about to quit Uber. With these current trip incentives, there is no excuse to not drive. Low fares shouldn't discourage drivers since trip incentives offer rewards to restore past earnings. Trip minimums are now $6.55, a $1 more.

Get on the road Uber drivers! Thank you Uber for listening to your drivers.