Uber Cutting Some San Francisco Drivers' Pay

Ride-hail company Uber is cutting some San Francisco drivers' pay by increasing the commission they pay to 30%, Forbes reports

According to Forbes, the potentially $50 billion company is testing a pilot program in which some UberX drivers would pay 30% commission on the first 20 rides they give a week, followed by 25% commission on the next 20 rides, and 20% commission on the rest. Per Forbes:

The tiered structure, which Uber began testing in April, will hit new, part-time drivers the hardest. Those who only work a few hours a week will never see a 20% commission, which used to be standard for UberX, the company’s product where people use their personal cars for work. The new system rewards drivers who work more per week, and full-time drivers will likely reach the top commission tier in a couple days, but even the most dedicated get dinged on their first 30 or 40 rides.

The new commission model is also being tested for some drivers in San Diego. 

In the on-demand economy, platforms like Uber can make changes to the terms and conditions of their independent contractors' work with no recourse for the workers but to switch to a different platform.

[jump]

Tags: , ,

Related Stories