Uber guarantees minimum hourly earnings for its private drivers
22 Jun 2015|2,799 views
The Straits Times reported that Uber has upped the ante in the competition for passengers here by guaranteeing its drivers minimum hourly earnings during peak hours. The move is unprecedented for the taxi business, where cabbies' income is derived solely through fare takings.
The San Francisco-based start-up, which has become a rival to taxi firms in many countries, said the move was to increase its supply of cars on the road here during peak periods and would benefit passengers.
An Uber spokesman told The Straits Times last week,"We're constantly trying to optimise driver earnings to ensure consistently high reliability for riders." The guaranteed earnings scheme has been rolled out in almost all cities in the United States but was started here only a few months ago.
Under the scheme, the app company's private car hire drivers can earn up to $32 an hour during weekday morning peak hours of 6:00am to 10:00am, and $27 an hour on weekday evenings between 5:00pm and 11:00pm.
The scheme also applies during weekends, but at different hours and rates. If a driver makes less than the guaranteed amount in fares in a particular hour, Uber has promised to top up the difference. The Straits Times understands that the guaranteed rates are not fixed. They are also gross fares, before Uber takes its 20 percent commission.
Drivers have to fulfil certain conditions, including staying online on the app for 55 minutes of each hour. They must also complete at least one ride an hour and accept almost all bookings.
Industry experts said the guaranteed earnings scheme is a way for Uber to get drivers to stay on its app and edge out the competition from similar ride-booking systems, such as Lyft, which has a strong presence in the U.S.
The Straits Times reported that Uber has upped the ante in the competition for passengers here by guaranteeing its drivers minimum hourly earnings during peak hours. The move is unprecedented for the taxi business, where cabbies' income is derived solely through fare takings.
The San Francisco-based start-up, which has become a rival to taxi firms in many countries, said the move was to increase its supply of cars on the road here during peak periods and would benefit passengers.
An Uber spokesman told The Straits Times last week,"We're constantly trying to optimise driver earnings to ensure consistently high reliability for riders." The guaranteed earnings scheme has been rolled out in almost all cities in the United States but was started here only a few months ago.
Under the scheme, the app company's private car hire drivers can earn up to $32 an hour during weekday morning peak hours of 6:00am to 10:00am, and $27 an hour on weekday evenings between 5:00pm and 11:00pm.
The scheme also applies during weekends, but at different hours and rates. If a driver makes less than the guaranteed amount in fares in a particular hour, Uber has promised to top up the difference. The Straits Times understands that the guaranteed rates are not fixed. They are also gross fares, before Uber takes its 20 percent commission.
Drivers have to fulfil certain conditions, including staying online on the app for 55 minutes of each hour. They must also complete at least one ride an hour and accept almost all bookings.
Industry experts said the guaranteed earnings scheme is a way for Uber to get drivers to stay on its app and edge out the competition from similar ride-booking systems, such as Lyft, which has a strong presence in the U.S.
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