Now that nearly a couple of months has passed since the nationwide rate slashing by Uber, I’m curious how those of you who drove before the rate cuts feel that they have affected you. Are you making more, less or about the same as before? Please leave a comment at the bottom of this article and tell us what city you drive in and how the rate cuts have affected you.
I have one anecdotal story to tell you… a friend of mine who drives in New York City and who has been a huge earner, making upwards of $2,000 a week (because he drives about 18 hours a day – literally, six or seven days a week), just called to tell me the depressing news.
He told me that one morning shortly after the rate cuts he worked from 8:00 a.m. until noon and made a grand total of $40! Which of course comes to $10 an hour.
He said he just sat and sat and sat and got no calls. I was so shocked by this (I say sarcastically) because I had just gotten an email from Uber telling us the great news that since they reduced prices in New York they are seeing positive results for drivers.
They said that “partners spent 39% less time waiting for a trip while online” and that they have “already seen a 20% increase in hourly earnings”. Weird. Because that’s not what my friend experienced. He spent four hours driving around to all the usual places and there just weren’t any trips. Which is a bit surprising in light of the fact that Uber did drop rates rather substantially. You would think they would have gotten a nice bump in business. But despite what they publicly proclaim to the world, real drivers such as my friend and myself, are not seeing it – at all.
And oddly in the weeks leading up to the rate cuts everyone was pretty busy in New York. I didn’t understand why they were dropping the rates here because we were keeping pretty consistently busy. It just didn’t make any sense. And as of today, almost two months later, I’m still not seeing any noticeable increase in business.
What company drops rates when it doesn’t have to? There was no competition forcing them to drop rates. They were already about 40% lower than taxis and their rates were exactly the same as Lyft’s. I just can’t see what possible benefit can come from it – either to them or to drivers.