21/08/2024
Uber Creates a Race to the Bottom, Sacrificing Drivers for Lower Fares
On July 5, 2024, Uber drivers across the country were blindsided by an email notification from Uber announcing a significant change to the fare structure, set to take effect on August 7, 2024. This notification informed drivers that their rates would be lowered, based on geography or location. Just two days before the changes were to be implemented, drivers were advised that the new rates would instead take effect on August 21, 2024.
Lack of Consultation: A Breach of Partnership
In their announcement, Uber stated, "In most cases, the rates will be lower than those currently used. We anticipate that these changes will lead to an increase in rider demand and result in more trips for driver-partners." The key term here is "driver-partners," a term that suggests a mutual relationship built on consultation and respect. However, in reality, drivers were not consulted in any way, shape, or form before these drastic changes were implemented. The new rates were not disclosed to drivers until the day they took effect, leaving them no opportunity to voice concerns or make necessary adjustments.
A History of Unfulfilled Promises
It is essential to recall that the previous rate of $1.32 per kilometre had only been in place since mid-2023. This rate itself was a modest increase from a prolonged period of underpayment. Just over eight years ago, Uber launched a "promotion" that slashed the rate from $1.30 per kilometre to a mere $1.00 per kilometre. This so-called promotion was intended to last six weeks but extended for four years before the rate was finally increased to $1.15 per kilometre. Although this increase made national news, it was still lower than the rate from four years earlier. Another three years passed before the rate was restored to $1.32 per kilometre. Now, we are witnessing rates as low as $0.78 per kilometre. When will this madness stop?
The Reality Behind the Ride
Uber’s claim that lower fares will lead to more work for drivers overlooks the stark reality: this will only create a modern-day form of slavery. Passengers need to understand that drivers bear the full cost of fuel, vehicle servicing, licensing, and other expenses. In some states, drivers pay higher insurance premiums, which can reach up to $4,000 per year, as well as additional registration fees. Moreover, the journey doesn't start when the driver picks up a passenger; it begins when they accept the job. Drivers can drive up to 30 km just to pick up a passenger, and with rates as low as $0.78 per kilometre or a minimum trip fare of $6.18, drivers are left with an hourly wage that can be as little as $14 after covering all expenses, including GST.
A Call to Action
It's time for passengers and the general public to recognize the unsustainable and unfair conditions under which Uber drivers operate. We call on Uber to engage in meaningful consultation with drivers and to reconsider their fare structure in a way that ensures fair compensation for those who keep the service running.
Drivers Unite, nothing will change until you do.