RIDEGURU
Sadly, the drivers are starting to accept this fact as a daily occurrence, but I feel the need to share this with the customers/passengers/clinets/riders. I know this forum would be a good place for it as I know we aren't all drivers.
The practice of Uber taking more than the 20~25% commission has been around for a long time, but it has become more obvious now that Uber changed the way they display our earnings. This is ironic, because it was harder to tell before but now it's obvious, as it displays how much the customers are paying.
So check this out:
So, the driver gets paid $56.55. That is based on the base fare, distance fee and the duration fee. (plus tip)
But look at below that. It's how much the Rider Pays. The rider paid $121.78! What?!! It's almost double I made.
So why does this happen? Uber's commission is supposed to be 25% and a booking fee (which is like $1~) It happens, as I understand it, is that they can charge what ever they want to the customers and NOT based on the posted duration and distance. and when they find a sucker who is willing to pay a lot? They overcharge AND DO NOT SHARE with the drivers.
This is the real goal of Uber offering Upfront Pricing, by the way. It's almost like surge pricing in a way they charge more to the consumers, but they don't call it a surge. If it were, the driver would get paid for it.
Comments
No, riders don't know (and arguably don't care) how Uber compensates drivers.
What they DO know is that there are plenty of drivers willing to do the ride for whatever Uber gives them.
So the real question is and should be "is Uber's business model sustainable?"
In other words, "Are there enough drivers willing to continue to deliver rides for what Uber pays them, and enough passengers willing to pay for those rides at what Uber charges them?"
So far the answer is and has been "Yes."
For me personally, the answer is "Yes for Uber Lux SUV" and occasionally "Uber Select," but "No for Uber X and Uber XL."
But I generally only do Uber in between the scheduled rides I'm doing for my own limousine company and affiliates, or on the way to or from home and such scheduled rides. In other words, Uber is extra income, not reliable steady income.
Here's an upside. Riders usually tip based on the total fare. It's like the meal at a restaurant was higher. They'll calculate it on a higher price so theoretically they will tip you better.
$3 on a $121 fare is crappy but par for the course. LOL.
This is the result of drivers not uniting to disrupt this disgraceful abuse .
The taxi industry's demise is also attributed to drivers not uniting to do something about it. They were too distributed from city to city.
Couldn't fend off Uber with national presence.
There are lots of "walk out on Uber" groups on Facebook. They never tell you when the walk-out day is though. It's either it happened already or they are waiting for the member count to be higher than 10.
WTH?! This makes no sense? How are they getting away with this? Couldn't the drivers take them to court, I mean at the end of the day the drivers are supposed to be getting 75-80% commission. This proves Uber is STEALING from the drivers.
how do you drown in an ecstacy? or is that literal? like a batch/barrel full of ecstacy pills?
but really, how is this allowed? any answers?
Well, to answer your question... No, they do not. The way they complain, I think they think we get to keep all of it.
I don’t think drivers really care and I doubt it even crosses their minds. I mean why. To them driver and Uber are one and the same.
It’s exactly the same as when you buy an apple at the grocery store, you don’t wonder how many the distributor, importers, delivery people or farmers made.
I was driving for Uber, and past year this is what they have being doing, it’s usually %40 or higher they keep, I called and complained to the costumer service, and they say, you are getting paid by mile, what we charge the customer is not your concern. Uber has gotten so greedy lately, I don’t know how other drivers don’t quit as well. And passengers should really pay attention, they are being robbed just as much as the drivers are.
Sounds much like Uber.
They have an argument, no? Uber has a predetermined arrangement with their drivers, and the drivers should honor that arrangement. If Uber drecides to raise the price on customers, that’s a discussion between them.
I understand your frustrations, and yes Uber is evil for overcharging the unsuspecting consumers. However, aren't you still getting paid the posted rates?
We signed up for the program to make the entire fare minus commissions. This does not follow that at all.
We chase surges for when the demand is high. Per capitalism. and we get paid when the consumers agree to pay more for the services rendered. Why should Uber get paid that uptick and not the drivers?
Well, if you are gonna mention capitalism, isn't that what this is? Consumers pay whatever they are willing to pay, drivers are working for whatever they get paid, and Uber tries to take as much as everyone allows it.
Cruel, yes.
I stopped paying attention to the earnings page. Just move on, man. Uber does what they want. Lyft and everyone else does it too anyways.
In some ways, if they are screwing consumers, and they are getting away with it, good for them. I don't want to be cuaght up the scam too.