Before I dig in, I just wanted to give a quick shout-out and word of thanks to Jack Ross who’s been doing the round-ups for the past few months pro-bono and been doing a great job at that. Jack is moving on to bigger and better things at VICE as a sports contributor so today I’ll be handling the round-up.
Well the big news in rideshare happened yesterday afternoon when Uber announced a slew of fare cuts in 48 cities across the US. Most cuts were in the 10-25% range but there were a few cities that saw their mileage rate cut in half. Along with the cuts, Uber also rolled out a guarantee for peak hours that ranged from $14-$20/hr depending on the city and a guarantee for non-peak hours that ranged from $10-$14/hr. This number is before Uber’s 20-25% commission so you can see that these guarantees aren’t really guaranteeing a whole lot.
Uber’s Announcement: Beating The Winter Slump
I’ll be releasing an in-depth YouTube video this weekend (now live below) with my thoughts on the whole situation but for now I think a wait and see approach is best. Obviously there are a lot of drivers who are upset and for good reason, but the only thing I can possibly think of as to why Uber has made these cuts is to get more passengers out on the road. As many of you have probably realized, the beginning of the year is a slow time for rideshare (especially compared to the Holidays) drivers and Uber is all about growth. [Read more…]