In an attempt to attract more drivers and incentivize accepting short rides for them, Uber Technologies Inc. is testing an earnings algorithm for its drivers in 24 cities of the United States (US), that enables drivers to check destinations and fares before accepting a ride.
The improvements, which are currently in the pilot stages, are the most noteworthy adjustments to Uber’s driver payment algorithm in years as they come while the business is actively working to recover drivers who had quit during the initial phase of the pandemic.
Meanwhile, customers’ fare payments will remain unaffected.
Long-Awaited Update
Uber drivers had long been asking for the option to see destinations and rates before accepting a ride but Uber had resisted, claiming that it would allow drivers to choose between rides or differentiate against clients for ‘disadvantaged’ localities.
Uber currently has a similar system in California that was developed after a 2020 state dispute over gig workers’ rights to prove that its drivers are ‘independent contractors’. However, it stated that its most recent fare experiment in the US has nothing to do with the regulation of gig workers as the pilot program has been implemented in cities across Texas, Florida, and the Midwest that are not in connection with gig workers.
Uber’s Head of Mobility in the US and Canada, Dennis Cinelli, said,
Gig work is very competitive, not just with Lyft but other platforms, and we think this feature really enhances our platform’s competitiveness versus others.
He explained that for now, the pay changes will not impact consumer prices and that they are “not financial features”.
However, Uber has refused to respond to the financial implications of the revisions, which could imply that consumers will have to pay more for short journeys.
Cinelli also mentioned that since the policy’s implementation in California in 2020, Uber has not experienced any discrimination by drivers. “Otherwise, we wouldn’t have rolled it out at this time,” he stated.
He added that Uber has the authority to disengage drivers who refuse rides on the basis of race or low-profit neighborhoods on a regular basis. Cinelli mentioned that the company had to lower profits for long journeys to provide drivers with upfront information about fares to prevent them from avoiding short rides.
According to Uber, data from certain cities with upfront pay indicates that trips in which the distance to the pickup site is longer than the journey itself resulted in a 22 percent average boost in drivers’ earnings.
Uber Drivers in Pakistan
Uber does not have such options in Pakistan, and it has not released any statement regarding a potential introduction either. Regardless, it can be a great addition to Uber’s driver app if drivers get to know how much they will make if they accept a ride.
It could also add to passengers’ difficulties, considering choosy drivers who are already interested in cherry-picking rides. Many Pakistani Uber drivers often do not bother to accept rides that are short or have low rates and prefer picking passengers from areas that have a peak factor in order to make more than the regular fare. Thus the new system could have a negative impact on Uber’s customers in Pakistan.
Via Reuters
