Harry here. In general, I’ve found it better to work at night, especially weekend nights, because you can usually guarantee on bar hoppers and club goers to request an Uber or Lyft ride all throughout the night. However, not everyone can (or wants to) drive at night, so today, senior RSG contributor John Ince compares day time driving to nighttime driving to see which one truly comes out on top.
Harry here. Uber has announced some pretty big changes recently, so we’re taking a break from our regular scheduled posting to provide you an analysis of these changes. Senior RSG contributor Christian Perea breaks down what you need to know about Uber’s changes to commission and upfront pricing.
Uber announced some pretty big changes to the way they display pay to drivers this week and confirmed that Upfront Pricing will be calculated based off what they think passengers are willing to pay. Uber will now show exactly how much passengers paid for a ride and allow drivers to cash out more earnings on Instant Pay as they drive throughout the week.
The main takeaway for drivers is that Uber will no longer take a 25% commission from fares between riders and drivers in all US cities with UberPOOL. Instead, drivers in these markets will now see their pay reflected “post commission”. It is not a pay-cut; they are now just showing what drivers have already been getting paid after commission all along.
Harry here. Uber announced a pretty interesting pay raise to drivers in 8 states, and it could potentially have a big impact on how drivers are classified in the future. However, it’s just a test, so we’ll have to see how it pans out! Today, senior RSG contributor Christian Perea outlines what this pay increase is for and its potential impact on drivers in the future.
Also, I’ll be on vacation starting today for the next two weeks, so if you send me an email, just know I might not be able to respond for a while. Our contributors will respond to comments left below, though, so feel free to ask questions or make comments there!
Last week, Uber announced a 5 cent per mile pay increase in eight states in order to fund Driver Injury Protection insurance. Uber announced they are testing this in partnership with OneBeacon and Aon as a pilot program that could eventually expand to other states. Drivers in these states will be able to signup for injury protection and pay into a fund OR simply collect an extra $0.05/mile. That’s obviously not a huge pay increase but every little bit counts 😉
The program is unique because it shows how Uber may pilot other driver pseudo-benefit programs in the future. On-demand work has often been criticized because there are no traditional workplace protections for those who get injured on the job. This seems to be a good way to offer full-time drivers something valuable while allowing part-timers to opt-out.
Drivers who elect to opt-in to Driver Injury Protection will pay $.0375 cents/mile for every mile they have an Uber passenger in their car (on trip miles). However, the Driver Injury Protection is active the entire time that the driver is logged into the Uber app, even when they are waiting for a request. Drivers who do not signup will still enjoy the increase $0.05 increase in per mileage earnings.
The rate increase of $0.05/mile and option for Driver Injury Protection will be effective in the following states:
- West Virginia
- South Carolina
Uber says they plan to test the pilot in these states before expanding to other markets. Hopefully, if the pilot succeeds, Uber and their partners will be able to expand this to other markets and bring a small pay increase my way. Again, every little bit counts right?
It’s tough comparing one Uber driver’s income to another because there are so many factors that go into it. In my mind though, when and where you drive are what matter most.
I recently wrote about how I made almost $200 after expenses in 8 hours of driving ($25 per hour) on a Saturday night but, based off my analysis, the reason why I made so much was because I stayed busy the whole night.
Uber and Lyft are typically busiest on Friday and Saturday nights and earnings are always at their highest during that time, so that’s why when you drive matters. But where you drive is just as important. I think the earnings potential on a Saturday night is actually pretty similar between big and small markets, but the thing that differentiates a big profitable market like San Francisco from a smaller market in the middle of the country is really how busy drivers are during the rest of the week.
Harry here. One of the biggest complaints we hear from drivers is around topics of pay – every driver wants to earn more and see higher rates but will it ever happen? Today, senior RSG contributor Christian Perea takes a look at the few situations that could force Uber to raise rates and examines how likely they are.
After three years of fare cuts, it’s easy to wonder if Uber will ever increase its rates again. I single out Uber here because it is the largest ride-hail company and has the most market share. So Uber plays the biggest part in setting prices for the industry.
Over the last few years, Uber has led the vast majority of steep price cuts for drivers. Whenever Uber lowers prices, Lyft follows within a few weeks. Even smaller rideshare companies like Via, Fasten, or Fare are forced to set prices in line with what Uber pays. This means Uber is the dominant player in the ride-hail market and effectively sets prices.
This is known as oligopolistic competition. (What is that? See Khan Academy)