Uber has consistently cut rates in January for three years in a row now. In fact, it’s actually happened on the same day the last couple years and, as you can imagine, it’s not a happy day for drivers. Nobody likes having their pay cut overnight, but Uber has this bad habit of cutting prices AND telling drivers it’s going to be good for them too! They argue that lower prices increase demand and allow drivers to increase their utilization rate, thus making more money.
Yet, after three years of these rate cuts, I have yet to find a single driver tell me they make more money after fare cuts than they did before. Oh, and there’s the fact that rate cuts mean drivers have to drive more miles to make the same amount of money, thus increasing their expenses, which Uber never takes into account. I think rate cuts are bad enough, but Uber’s messaging around rate cuts has always caused a lot of resentment among drivers. (read more)