I have been UBER driver for about 10 months and I was very pleased until 10 days ago when they decided to lower the prices by 15% increase commission to 20% and charge us for the stupid phone, that half of the time restarts on its own. Here is the e-mail that they sent to us:
COMMISSION & PRICING UPDATES
Summer always ends too quickly - this year that is especially true as Uber Chicago saw demand soar higher than ever! The last few weekends were the biggest we've seen in the history of uberX, loyal riders are happier than ever with fast and reliable service, new riders are coming on by the thousands each week, and most importantly, the partners who make all of this possible are earning more than ever before!
CHANGES TO YOUR PAY STATEMENT
Back in January we announced that we were lowering our uberX commission from 20% to 5% to help maintain partner earnings through what is normally the slowest time of year. The move worked - uberX usage in Chicago grew rapidly, and even after we moved our commission back to 15% in mid-April, uberX partners continued to make more than ever before.
As the summer comes to a close and we enter the busiest time of the year, it's time to move back to the original 20% commission level. Additionally, we will no longer be waiving the $10/week device subscription fee that we have covered since uberX launched back in May 2013. Both the commission change and the device subscription fee take effect this Friday, August 15.
LOWER PRICES = INCREASED DEMAND
To continue to grow uberX at an incredible rate, we're also permanently decreasing uberX prices by roughly 15%. The new rates are as follows:
Base: $1.70
Per mile: $0.90
Per minute: $0.20
Minimum trip: $2.70
The drivers are furious and the passengers understand our position. We need to continue reaching out to drivers and passengers to make them aware of the changes, how they effect us and aware of what we are doing in response to the abuse.
UBER had a good thing going for them: A bunch of independent drivers that use their own personal cars, gas, maintenance, insurance and time. We drive for many reasons and needs but now the burden is too much on the drivers with average incomes less than $10.00 per hour after expenses and the real cost of driving for UBER. All of the risk is on the driver with little compensation and Zero benefits. This is totally Un-American and shear GREED!
While out talking to the drivers today a driver mentioned that UBER had 8000 drivers in Illinois at their disposal. I'm not quite sure if that number is correct but knowing how the economy in Illinois is and the unemployment/under-employment these numbers are feasible. There are Approximately 13 Million residents in Illinois, 9.5 million of those resident live in the Chicago metropolitan area (Including suburbs).
Just for the heck of it I would like to look at how these potential 8000 drivers impact UBER's bottom line. This scenario is just an exercise obviously there is more to it than just these numbers.
So Hypothetically speaking: If each driver paid a monthly fee of $43.33 per month for the device subscription fee and the drivers only drove 5 days per week, driving 2 rides per hour and only 2 hours per day.
Device Subscription Fee:
UBER Commissions:
$43.00 per month X 8000= $346,640 per mo.
$346,640 X 12 months = $4,159,680 per year
2 hours a day X 5 days per week, 2 rides per hr
$10 per ride - 20% commission= $2.00 X 4 rides = $8.00 daily. $8.00 X 8000 = $64,000 per day X 5 days = $320,000 per week
$320,000 per week X 52 Weeks = $16,640,000 per year
WOW that's a lot of commission.
? Wonder why Chicago wants a piece of the pie?
This was only a scenario with very conservative numbers. Ok the average ride currently is probably more like $7 and you have to do about 3 per hour but the numbers still make sense.
When you try to reach out to them, they just send you back a generic email, stating that the demand will get higher and that we should not be surprised to get more earnings. How the hell we'll get more earnings, when right now we do maximum rides per hour. I can't do more than what I do right now. So they will keep hiring new drivers on top of the 8000 they have, and some of them barely speak any English and do not know the city at all. So they will be happy with the money they make, because they just came from a place where they did not earn anything. Uber will be extremely happy because the demand will go up and with all these charges they will make tons of money. The rest of us that feed a family with this and have been loyal to Uber through the whole SaveUberX campaign, have to learn how to live with $800-$1000 less a month.
Boycott of UBER and UBERX (Labor Day Walk Off) for the Labor day weekend August 29 thru September 1, 2014 in all markets particularly in Chicago. Support the UBER drivers. Try the competition: Taxi Services, Lyft, Sidecar, The Bus or just walk while the weather is still nice read more