Uber’s New Fare System Raises Its Cut While Angering Drivers
Uber has acknowledged that an experimental pricing system it introduced last year may result in drivers collecting a smaller portion of some fares. The ride-hailing company made the disclosure in an email sent to drivers on Friday, confirming suspicions that have been breeding driver resentment for months.
Under the new system, in place in 14 major markets, driver pay is no longer directly tied to how much passengers pay. Instead, Uber can increase fares based on factors like destination and time of day, but still only pay drivers based on mileage and time spent on individual rides.