Uber Increased Fares & Drivers Got a Pay Cut/Mystery "Uber Fee" Explained

Sfla415guy

Member
Every driver needs to go back and scrutinize all of their trips since upfront pricing has gone into effect aswell as trips since the transition of showing our per/mile per/minute rate pre & post 20% or 25% Commission vs. now just showing our rate after the 20% or 25% has been taken.

Many drivers do not realize that the numbers we see for our $/mile $/minute represents after Uber has already taken they're cut. We also have the infamous Booking Fee and now the new mysterious "Uber fee".

I have had several back and forth conversations with support and half of the time I receive a response stating the "Uber fee" fluctuates depending on a multitude of factors (No examples ofcourse) and half the time I receive a response stating the Uber fee is the 20% or 25% Commission. Obviously this is not the case. If it was, that means we are being paid by a nonsensical fluctuating commission structure anywhere from 20% to 70%.(or their math is inconsistent at the level of a kindergarten student). Regardless, Uber support doesn't understand what the "Uber fee" actually is.

Today I started going back and looking through recent trips. I only got as far as two weeks and have already found numerous trips where my pay out is less then what the overall payout is to Uber. This is robbery. And no explanation is given as to how these fees are justified or where they're actually coming from or going. As far as I understand it, it is broken down like this:

STICK WITH ME HERE


First a fictional trip to get our math on the same page. (Then I will show and break down an almost identical real life from today)

UberX : 5.00 miles & 15.00 minutes + Booking fee
Rider Fare: $8.85

$0.90/mile $0.15/minute ($6.75+$2.10 booking fee)

- 20% (my case) or 25%
$0.72/mile $0.12/minute
= $7.50
Here uber has now taken their commision.

-$2.10 Booking fee = $5.40

So, theoretically this trip should give the driver $5.40 and uber $3.45. With the booking fee (whatever it goes to, this is already a clever way of adding to our commission %), it is already high.
Now with upfront pricing we have the mystery that is the "Uber Fee"

Here is a real life trip I did today and almost identical time/miles:

UberX : 4.83 miles & 15.54 minutes + Booking fee
Rider Fare: $11.93 ??huh??

$0.90/mile $0.15/minute
($6.68 + $2.10 booking)
=$8.78

-20% commission
$0.72/mile $0.12/min = $7.44

- $2.10 Booking fee = $5.34

Uber Gets Paid:
"Uber fee" = $4.49
Booking fee = $2.10

Driver pay = $5.34
Uber pay = $6.59
Huh???

Where did that extra $4.49 go which would almost double our income? Uber already took their 20% and Booking Fee!

Conclusion: So it turns out we did get that increase in fares we have all been asking and hoping for, but with that we also got a decrease in wages and our overall pay across the board.

Upfront pricing is just an increase in fares without paying drivers the agreed upon cut of each fare, plain and simple.

The loophole is terminology and lack of any real math that can be shown to drivers backing up any purpose of the "uber fee" or even how it is calculated. Any reasoning I have seen from Uber explanations ( from support and literature/emails) is identical to the supposed purpose of the Booking Fee.

Riders got a Fare increase and drivers got a pay decrease. Uber is keeping the difference. If anyone sees it differently please let me know what I am missing.
 

UberLaLa

Well-Known Member
In May Uber instituted the new TOS, which made this all 'legal.' Unfortunately. The real losers here are passengers paying more for less. Passenger paying Premiums with drivers driving at Base or minimal Surge rates, and giving services in accordance with such.
 

Sfla415guy

Member
Correction, the new slogan is "Higher fares and lower rates means more money... for uber to spend on 180 days of change"
 

UberIsAllFubared

Well-Known Member
In May Uber instituted the new TOS, which made this all 'legal.' Unfortunately. The real losers here are passengers paying more for less. Passenger paying Premiums with drivers driving at Base or minimal Surge rates, and giving services in accordance with such.

Essentially uber found a way to charge surge prices (since their stats prove people will pay surge prices) without cutting the drivers in on the surge pricing.
 

UberLaLa

Well-Known Member
Yes very true. Though it seems like the gap in driver payout versus Rider Fares since upfront pricing was put into effect has continued to increase, especially as of recent.

Whatever the market will bear. Uber will watch the analytics on their Apps and find that sweet spot of tolerance for both what passengers will pay, and drivers will accept.
 

WMUber

Well-Known Member
I can't believe this. It's been over 100 days since the new addendum and drivers are now finally realizing Upfront Pricing is screwing both the drivers and riders. Shit, I figured that out in August 2016...

Here is the reality. There no longer is a 20% or 25% commission. Read the May 22, 2017, addendum. When you agreed to it, you gave up the old commission structure. Depending on when you started, you are paid $0.72/$0.675 per mile driven and $0.12/$0.1125 per minute. The addendum clearly states the "Fare" that the driver earns: You are entitled to a Fare for each Ride that you provide, where “Fare” is a base fare amount plus actual distance and/or time amounts (or as required by applicable law), provided that distance and/or time amounts may be predetermined in certain situations, such as for flat rate and minimum fare trips, or estimated where GPS information for that trip is unavailable.

So repeat after me, "Uber no longer takes a commission. I only earn $0.72 per mile and $0.12 per minute, regardless of what the rider pays."
 

iheartuber

Well-Known Member
In May Uber instituted the new TOS, which made this all 'legal.' Unfortunately. The real losers here are passengers paying more for less. Passenger paying Premiums with drivers driving at Base or minimal Surge rates, and giving services in accordance with such.


The drivers get paid squat so they don't offer water, mints, wash their cars often or keep up with their repairs.

Meanwhile, the pax pays higher prices....
 

iheartuber

Well-Known Member
Every driver needs to go back and scrutinize all of their trips since upfront pricing has gone into effect aswell as trips since the transition of showing our per/mile per/minute rate pre & post 20% or 25% Commission vs. now just showing our rate after the 20% or 25% has been taken.

Many drivers do not realize that the numbers we see for our $/mile $/minute represents after Uber has already taken they're cut. We also have the infamous Booking Fee and now the new mysterious "Uber fee".

I have had several back and forth conversations with support and half of the time I receive a response stating the "Uber fee" fluctuates depending on a multitude of factors (No examples ofcourse) and half the time I receive a response stating the Uber fee is the 20% or 25% Commission. Obviously this is not the case. If it was, that means we are being paid by a nonsensical fluctuating commission structure anywhere from 20% to 70%.(or their math is inconsistent at the level of a kindergarten student). Regardless, Uber support doesn't understand what the "Uber fee" actually is.

Today I started going back and looking through recent trips. I only got as far as two weeks and have already found numerous trips where my pay out is less then what the overall payout is to Uber. This is robbery. And no explanation is given as to how these fees are justified or where they're actually coming from or going. As far as I understand it, it is broken down like this:

STICK WITH ME HERE


First a fictional trip to get our math on the same page. (Then I will show and break down an almost identical real life from today)

UberX : 5.00 miles & 15.00 minutes + Booking fee
Rider Fare: $8.85

$0.90/mile $0.15/minute ($6.75+$2.10 booking fee)

- 20% (my case) or 25%
$0.72/mile $0.12/minute
= $7.50
Here uber has now taken their commision.

-$2.10 Booking fee = $5.40

So, theoretically this trip should give the driver $5.40 and uber $3.45. With the booking fee (whatever it goes to, this is already a clever way of adding to our commission %), it is already high.
Now with upfront pricing we have the mystery that is the "Uber Fee"

Here is a real life trip I did today and almost identical time/miles:

UberX : 4.83 miles & 15.54 minutes + Booking fee
Rider Fare: $11.93 ??huh??

$0.90/mile $0.15/minute
($6.68 + $2.10 booking)
=$8.78

-20% commission
$0.72/mile $0.12/min = $7.44

- $2.10 Booking fee = $5.34

Uber Gets Paid:
"Uber fee" = $4.49
Booking fee = $2.10

Driver pay = $5.34
Uber pay = $6.59
Huh???

Where did that extra $4.49 go which would almost double our income? Uber already took their 20% and Booking Fee!

Conclusion: So it turns out we did get that increase in fares we have all been asking and hoping for, but with that we also got a decrease in wages and our overall pay across the board.

Upfront pricing is just an increase in fares without paying drivers the agreed upon cut of each fare, plain and simple.

The loophole is terminology and lack of any real math that can be shown to drivers backing up any purpose of the "uber fee" or even how it is calculated. Any reasoning I have seen from Uber explanations ( from support and literature/emails) is identical to the supposed purpose of the Booking Fee.

Riders got a Fare increase and drivers got a pay decrease. Uber is keeping the difference. If anyone sees it differently please let me know what I am missing.


It looks like what happened was uber charged the pax a 1.4x surge and then paid driver base fare

Base fare = $6.75
Driver pay less 20% commission on that= $5.34
Base fare at 1.4x surge is 6.75 x 1.4 = $9.45 + $2.10= $11.55

Looks like they estimated the ride to take .422 miles longer ($0.38) but you found a little bit of a shortcut.
 
Last edited:

SorryBluetoothOnly

Well-Known Member
Every driver needs to go back and scrutinize all of their trips since upfront pricing has gone into effect aswell as trips since the transition of showing our per/mile per/minute rate pre & post 20% or 25% Commission vs. now just showing our rate after the 20% or 25% has been taken.

Many drivers do not realize that the numbers we see for our $/mile $/minute represents after Uber has already taken they're cut. We also have the infamous Booking Fee and now the new mysterious "Uber fee".

I have had several back and forth conversations with support and half of the time I receive a response stating the "Uber fee" fluctuates depending on a multitude of factors (No examples ofcourse) and half the time I receive a response stating the Uber fee is the 20% or 25% Commission. Obviously this is not the case. If it was, that means we are being paid by a nonsensical fluctuating commission structure anywhere from 20% to 70%.(or their math is inconsistent at the level of a kindergarten student). Regardless, Uber support doesn't understand what the "Uber fee" actually is.

Today I started going back and looking through recent trips. I only got as far as two weeks and have already found numerous trips where my pay out is less then what the overall payout is to Uber. This is robbery. And no explanation is given as to how these fees are justified or where they're actually coming from or going. As far as I understand it, it is broken down like this:

STICK WITH ME HERE


First a fictional trip to get our math on the same page. (Then I will show and break down an almost identical real life from today)

UberX : 5.00 miles & 15.00 minutes + Booking fee
Rider Fare: $8.85

$0.90/mile $0.15/minute ($6.75+$2.10 booking fee)

- 20% (my case) or 25%
$0.72/mile $0.12/minute
= $7.50
Here uber has now taken their commision.

-$2.10 Booking fee = $5.40

So, theoretically this trip should give the driver $5.40 and uber $3.45. With the booking fee (whatever it goes to, this is already a clever way of adding to our commission %), it is already high.
Now with upfront pricing we have the mystery that is the "Uber Fee"

Here is a real life trip I did today and almost identical time/miles:

UberX : 4.83 miles & 15.54 minutes + Booking fee
Rider Fare: $11.93 ??huh??

$0.90/mile $0.15/minute
($6.68 + $2.10 booking)
=$8.78

-20% commission
$0.72/mile $0.12/min = $7.44

- $2.10 Booking fee = $5.34

Uber Gets Paid:
"Uber fee" = $4.49
Booking fee = $2.10

Driver pay = $5.34
Uber pay = $6.59
Huh???

Where did that extra $4.49 go which would almost double our income? Uber already took their 20% and Booking Fee!

Conclusion: So it turns out we did get that increase in fares we have all been asking and hoping for, but with that we also got a decrease in wages and our overall pay across the board.

Upfront pricing is just an increase in fares without paying drivers the agreed upon cut of each fare, plain and simple.

The loophole is terminology and lack of any real math that can be shown to drivers backing up any purpose of the "uber fee" or even how it is calculated. Any reasoning I have seen from Uber explanations ( from support and literature/emails) is identical to the supposed purpose of the Booking Fee.

Riders got a Fare increase and drivers got a pay decrease. Uber is keeping the difference. If anyone sees it differently please let me know what I am missing.

Dude. Can you maybe skim the thread titles ont he first page of the forum before wasting your time creating a new one? This has been discussed as nauseum the past few days.
 

Sfla415guy

Member
I can't believe this. It's been over 100 days since the new addendum and drivers are now finally realizing Upfront Pricing is screwing both the drivers and riders. Shit, I figured that out in August 2016...

Here is the reality. There no longer is a 20% or 25% commission. Read the May 22, 2017, addendum. When you agreed to it, you gave up the old commission structure. Depending on when you started, you are paid $0.72/$0.675 per mile driven and $0.12/$0.1125 per minute. The addendum clearly states the "Fare" that the driver earns: You are entitled to a Fare for each Ride that you provide, where “Fare” is a base fare amount plus actual distance and/or time amounts (or as required by applicable law), provided that distance and/or time amounts may be predetermined in certain situations, such as for flat rate and minimum fare trips, or estimated where GPS information for that trip is unavailable.

So repeat after me, "Uber no longer takes a commission. I only earn $0.72 per mile and $0.12 per minute, regardless of what the rider pays."

I am fully aware of this. My break down and information of this post was meant to be helpful information for newer drivers and members of The Forum. I see lots of posts and threads regarding upfront pricing but mostly complaining and none taking the time to actually break it down and explain what is actually happening.

This is the reason I spend much less time on this forum then I used to. Not much useful information any longer. Just lots of negative comments, bickering at one another, and complaining, as opposed to advice and helping each other out like it used to.
 
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UberLaLa

Well-Known Member
The drivers get paid squat so they don't offer water, mints, wash their cars often or keep up with their repairs.

Meanwhile, the pax pays higher prices....

Precisely. And, how much better service do you give as their driver (forget the mints and crap) but just as a driver, when it's a 2.5x? Which the passenger is paying in many instances now, but driver getting Base.

I am fully aware of this. My break down and information of this post was meant to be helpful information for newer drivers and members of The Forum. I see lots of posts and threads regarding upfront pricing but mostly complaining and none taking the time to actually break it down and explain what is actually happening.

This is the reason I spend much less time on this forum then I used to. Not much useful information any longer. Just lots of negative comments, bickering at one another, and complaining, as opposed to advice and helping each other out like it used to.

It's actually been Threaded quite a bit...but new insights always welcome. Ignore the bickering and pitch in whenever you like.

:smiles:
 

Sfla415guy

Member
I am fully aware of this. My break down and information of this post was meant to be helpful information for newer drivers and members of The Forum. I see lots of posts and threads regarding upfront pricing but mostly complaining and none taking the time to actually break it down and explain what is actually happening.

This is the reason I spend much less time on this forum then I used to. Not much useful information any longer. Just lots of negative comments, bickering at one another, and complaining, as opposed to advice and helping each other out like it used to.

Also in recent weeks the gap in our overall payout and what riders are being charged is increasing and continuing to increase. This is relevant information. Sorry if my trying to help out fellow drivers by putting easy-to-understand information in a cohesive post offended anyone.
 
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