RIDEGURU
Uber always has a way with words. The rates are going up! Wait, no, it's going down.
- "You can expect that your overall trip earnings will stay the same as a result of the update." "In a step toward creating a more reliable earnings experience, we’re updating our time and distance rates to make earnings more reflective of the time you put in, no matter where a trip takes you."
So what's happening?
- We’re increasing the per-minute rate and decreasing the per-mile rate for UberX and UberXL. Whether it’s a 2-mile trip or a 20-mile trip, your time will be valued.
- You can expect your overall earnings to remain the same. We’re putting more value on time to help create more consistent and dependable earnings, no matter where your next trip takes you. (source)
Our friends at Ridester has a thorough analysis and their thought on this Uber's fare update:
Comments
So, basically, it's the headline, right? We get paid more for our time rather than distance traveled. So if you are stuck in traffic, you get paid for that.
Would this also help the super short trips? We currently get screwed with this. I wonder if this will help? I haven't figured it out yet.
Classic Uber move. Distract and confuse.
Wait.. increasing per minute rates. Doesn't that mean that if you are sitting in traffic, the fare will be much higher even if it's a short distance? That isn't fair to passengers!
How do you come to the conclusion that it's unfair to passengers?
The fee passengers pay is the same. The only difference is how the fare paid is divided between drivers and Uber. In the end, passengers keep paying deeply discounted rates subsidized by drivers, Uber's profits increase, and yet again drivers end up paying for it all.