How Does An Uber Driver Payment Look Like After The Rate Cut?

The year 2016 did not start off as well as we all were expecting. If you’re an Uber driver you already know what I mean. The winter season is always a slow season as claimed by Uber. For this reason they’ve sliced up their drivers’ payment rate which have caused so much controversial.

It’s not the first time they’ve taken this action, but this time is even worse than the others. It’s outrageous thinking that drivers could possibly earn more by reducing the pay rate so low.

Uber has claimed that the cut in their price will increase the number of fares for the drivers which in turn will help them to earn more.

There’re some cities in the US that have seen this cut in drivers payment rate for three consecutive years. Some on them have done poorly while others have done OK. But none of them has done better than their previous year before the cut.

Uber drivers pay cut is not working for all drivers

I have no idea how some Uber drivers manage to get it work for them, it’s almost impossible to make a good profit after deducting all the expenses.

Nonetheless, most of the drivers are still functioning as usual. The cut pay is to help with the winter slum, let’s hope it does not stay as is, although it would be a miracle if it got raised again.

Many drivers are protesting with sign on their cars while they’re working to show that they don’t support this change. It’s very clear that drivers are not making as much money as they used to before this change.

Although the uber drivers have to accept getting less for the same service they’re providing, Uber on the other hand is still receiving the same amount of money.

They don’t cut in Uber’s fees whatsoever, can you believe that? Yes, they’re still making their 100% in profit and riders are still paying them the same amount in fees. The change is made only in drivers earning which is why most of them are very unhappy.

The promised guaranteed earnings

in an effort to keep us drivers working at the pay cut rate Uber is offering guaranteed earnings to those who are qualified. How does it work?

What is it all about? guaranteed earnings are sort of promises made by the Uber company to make sure that its drivers are not making too little, but Uber has a tight regulation on it.

Those regulations make it very hard for drivers to actually earn those guaranteed earnings.

In order to be qualified for guaranteed earnings you have to work during their block of hours and accept no less than 90% of your requests. If you’re someone who like to ignore your requests sometimes then you will have to stop that if you want to earn guaranteed earnings.

uber guarantee earning after drivers pay cut.

This is exactly how Uber announced the pay cut to its drivers. It started on January 9 of this year which was when I received the email.

Some drivers are very confused because they did not receive this email. They think that if this email was not sent to them it automatically means that they’re not potential qualifiers for the guaranteed earnings.

Fortunately, it’s not the case, you don’t have to receive the email in order to be part of those who are qualified for it. As long as you drive the specific block of hours required and abide by the rules you should be good.

driver pay cut and guaranteed earnings

 

This screenshot above depicts how the guaranteed earnings work. Although this is for the Tampa Bay area, the concept is the same for every city. The prices would be different but they will all work the same exact way.

Here’s how it works: In order to receive the guaranteed earnings you have to be on the road from Friday 10:00 PM to Saturday 3:00 Am. This is considered as one block of the guaranteed hours.

Or, from Saturday 10:00 PM to Sunday 3:00 AM. Keep in mind that you have to actually making some trips, not just login and not getting any passengers.

As you can see, there’s a minimum trips requirement per hour. In the case of Tampa Bay it’s 1.5 trips per hour.

For example if you make two trips and earn $20 during the peak time then you should receive an additional $10 which will make it a total of $30.

You should know that the guaranteed earnings is including the Uber fees, meaning your actual earnings would be less than the guaranteed.

Will the rate ever goes back up for the drivers?

I think this is very simple by now, we’ve seen a reduction in Uber pay rate for the last three years and it never goes back up. In the past drivers used to make way more than what they’re currently making today.

Uber is taking advantage of drivers because this company has too much money to treat its drivers as such. Do you know why is this price cut? We’ve all been speculated that it is a way to stay as a contender with its competitors.

But…It’s not what Uber says. They’re actually trying to make Uber ride price as low as possible to ensure that their price is lower than affording a car.

If they can achieve this goal then more people will ride Uber which would translate into even more money for them. So, to answer our question, I don’t think that the price cut will go back up.

It’s either you do it, or you look for something else to do.

As of today protesting doesn’t do a thing to Uber. All the past two years have seen a lot of protests from drivers bug nothing was changed. I guess the drivers see that protesting is a waste of time for them by now.

How should you schedule your working hours if you want to make money with Uber?

If you still want to work for them you need to be smarter than you were. Obviously the company does not care about its drivers, you don’t need me to tell you this. Just because they call us their partners doesn’t mean we’re really their partners. It’s just a…..they’re using.

Don’t drive around for no reason if you used to do so. It’s better to just park somewhere where you know you will receive pings instead of driving and hoping for a ping.

If you can, work during the peak hours only. This is what I’m going to do, I’m not going to work the regular rate because it would be a waste of time for me.

If you live in a big city it could be a little easier for you, but for those who live a small cities as in my case, they regular price could be too low to keep us driving.