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You're pay is worth less now

CoolAnt

Well-Known Member
Uber drivers all over Australia have received a rate cut this year but why is nobody talking about it?

You see, unlike wages growth in other industries, there have been no Uber rate increases to keep up with inflation.

The cost of living has gone up. Food, property and other services have increased. Effectively, if you are an Uber driver you are taking pay cuts every quarter.

The Maths:

The current Uber rates were set in 2014 and have not gone up since. Between 2014-2016 inflation was a total of 2.8 per cent, over 2 years, at an average annual inflation rate of 1.4 per cent.

This means by mid 2017 your actual pay adjusted for inflation is the equal to a 3% rate cut.

That's means you're earning $30-50 less per week than someone doing Uber in 2014. Obviously if you work longer hours you can make more money but this is a fact.

IMG_5010.jpg


Instyle This (inflation adjusted) 3% rate cut is even more impactful on drivers in Queensland who have effectively taken a 23% cut if you take into account the 20% rate cut in 2016.

If you don't want to earn no less than last year then you need to demand a 1.4% increase per year.

The important thing to note is that there is no such thing as no rate changes. When Uber does not increase rates with inflation, it is exactly the same as taking a rate cut.
 

drew2o

Member
Uber drivers all over Australia have received a rate cut this year but why is nobody talking about it?

You see, unlike wages growth in other industries, there have been no Uber rate increases to keep up with inflation.

The cost of living has gone up. Food, property and other services have increased. Effectively, if you are an Uber driver you are taking pay cuts every quarter.

The Maths:

The current Uber rates were set in 2014 and have not gone up since. Between 2014-2016 inflation was a total of 2.8 per cent, over 2 years, at an average annual inflation rate of 1.4 per cent.

This means by mid 2017 your actual pay adjusted for inflation is the equal to a 3% rate cut.

That's means you're earning $30-50 less per week than someone doing Uber in 2014. Obviously if you work longer hours you can make more money but this is a fact.

View attachment 99690

Instyle This (inflation adjusted) 3% rate cut is even more impactful on drivers in Queensland who have effectively taken a 23% cut if you take into account the 20% rate cut in 2016.

If you don't want to earn no less than last year then you need to demand a 1.4% increase per year.

The important thing to note is that there is no such thing as no rate changes. When Uber does not increase rates with inflation, it is exactly the same as taking a rate cut.
You've reached a point where you need a holiday now. :p

My day job hasn't seen an increase for the last 3 years. Most aussie workers didn't. Thats why wage growth for the whole of Australia is only at 1.9%.
 

ncc

Active Member
Mate - this is business and not employment. Uber has no responsibility to change the rates based on inflation. If you are not happy with the rates then don't drive for Uber. As others have mentioned even employers don't necessarily have to increase wages / salary based on inflation.
 

CoolAnt

Well-Known Member
  • Thread Starter Thread Starter
  • #7
If you are not happy with the rates then don't drive for Uber
I am not complaining. I am simply raising a valid point that is often overlooked. Uber drivers need to be aware that $1.45/km in 2017 is worth about 3% less than it was in 2014.

This needs to be taken into account when discussing future rate changes with Uber.

Taxi rates haven't increased in over four years, therefore Uber rates wont increase either.

This low wage/price inflation if not deflation period we are in does no-one any good.
It does certain people good.

Mate - this is business and not employment. Uber has no responsibility to change the rates based on inflation.
Yes, it is business and that is why it's critical for Independent contractors to know what they are charging customers and how much their labor is worth. In this case their remuneration (which is set by Uber) has dropped in value by 3% in real, inflation adjusted terms.
 

Waingro

Well-Known Member
I have only one issue with this ... Inflation is irrelevant to me when I have no Job. Uber gives me work.
If you want to have an inflation conversation why dont you talk about real estate prices and how they change vs inflation.
 

Scotsman

Well-Known Member
If you think Uber should consider inflation in any way then you are dreaming my friend. When they want to cut the fares, they just do it. What inflation?!?
 

CoolAnt

Well-Known Member
  • Thread Starter Thread Starter
  • #11
If you think Uber should consider inflation in any way then you are dreaming my friend. When they want to cut the fares, they just do it. What inflation?!?
I think some people are taking this the wrong way. I am just trying to make people aware that pay has gone down in real terms so your buying power is less than before. What you choose to do with this information is up to you.

On the upside, more people are using Uber than ever so the decline in your pay is offset by an increase in business.
 

Driving and Driven

Well-Known Member
I think some people are taking this the wrong way. I am just trying to make people aware that pay has gone down in real terms so your buying power is less than before. What you choose to do with this information is up to you.

On the upside, more people are using Uber than ever so the decline in your pay is offset by an increase in business.
Not truly offset, as you have to work longer to make the same amount of buying power.
 

CoolAnt

Well-Known Member
  • Thread Starter Thread Starter
  • #13
I have only one issue with this ... Inflation is irrelevant to me when I have no Job. Uber gives me work.
If you want to have an inflation conversation why dont you talk about real estate prices and how they change vs inflation.
Knowledge is power. Obviously you will do anything if desperate and out of work. I just want the full facts to be included in any discussion about rates, that is why i posted this. Not trying to be negative.
 

Mulder99

Well-Known Member
Actually,

Most workers wages have come down in real terms,

I know heaps of friends who have not had wage increases for at least 4 years....

So it's not only Uber drivers, a lot of industries have frozen wage increases across the board...
 

CoolAnt

Well-Known Member
  • Thread Starter Thread Starter
  • #15
Actually,

Most workers wages have come down in real terms,

I know heaps of friends who have not had wage increases for at least 4 years....

So it's not only Uber drivers, a lot of industries have frozen wage increases across the board...

Your friend's lack of a wage increase is only anecdotal. The fact is that overall, "The Bureau of Statistics Wage Price Index rose 1.9 per cent over the past year and by 0.5 per cent over the December quarter, on a seasonally adjusted basis."

http://mobile.abc.net.au/news/2017-02-22/wage-growth-remains-at-record-lows/8293704
 

Churbro

Well-Known Member
Uber puts a feed on the table, a roof over me head and a few slabs in the fridge each week. If ya wanna complain about a company who gave you an oppurt
 

Dontmakemepullauonyou

Well-Known Member
Uber drivers all over Australia have received a rate cut this year but why is nobody talking about it?

You see, unlike wages growth in other industries, there have been no Uber rate increases to keep up with inflation.

The cost of living has gone up. Food, property and other services have increased. Effectively, if you are an Uber driver you are taking pay cuts every quarter.

The Maths:

The current Uber rates were set in 2014 and have not gone up since. Between 2014-2016 inflation was a total of 2.8 per cent, over 2 years, at an average annual inflation rate of 1.4 per cent.

This means by mid 2017 your actual pay adjusted for inflation is the equal to a 3% rate cut.

That's means you're earning $30-50 less per week than someone doing Uber in 2014. Obviously if you work longer hours you can make more money but this is a fact.

View attachment 99690

Instyle This (inflation adjusted) 3% rate cut is even more impactful on drivers in Queensland who have effectively taken a 23% cut if you take into account the 20% rate cut in 2016.

If you don't want to earn no less than last year then you need to demand a 1.4% increase per year.

The important thing to note is that there is no such thing as no rate changes. When Uber does not increase rates with inflation, it is exactly the same as taking a rate cut.
Inflation?? You guys are lucky uber hasn't cut the rates every year like they do in the United States.

He's calculating a 3% drop due to inflation. Where were you when uber cut it's fares by double digits in years past? That was quite significant.
Yeah my market took a 15% cut then a year later a 30% cut they talking about 3% over 2 years smh
 

drew2o

Member
On the upside, more people are using Uber than ever so the decline in your pay is offset by an increase in business.
In business terms, our individual operational/earning capacity is limited. And it will only go down even with more pax, once a saturation is reached in terms of rider adoption of Uber, or any ride sharing service for that matter. Our individual capacity to earn is not scalable.

Your friend's lack of a wage increase is only anecdotal. The fact is that overall, "The Bureau of Statistics Wage Price Index rose 1.9 per cent over the past year and by 0.5 per cent over the December quarter, on a seasonally adjusted basis."

http://mobile.abc.net.au/news/2017-02-22/wage-growth-remains-at-record-lows/8293704
1.9% average increase for the whole year for the whole labour market is 'nothing' in real terms. It's like Uber Driver Ratings. :rolleyes:

Fat pay checks for CEOs, nothing for staff on 'above' award wage.

Uber puts a feed on the table, a roof over me head and a few slabs in the fridge each week. If ya wanna complain about a company who gave you an oppurt
Uber is just another (insert your favourite words here) for-profit company.
 

Instyle

Well-Known Member
Moderator
I have only one issue with this ... Inflation is irrelevant to me when I have no Job. Uber gives me work.
If you want to have an inflation conversation why dont you talk about real estate prices and how they change vs inflation.
Exactly the kind of person Uber love, want and need, dependant on their system and not really a true person running their own business.
 
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