Uber Slashes Fares in Melbourne and Drivers Aren't Happy About It
Good for riders, terrible for drivers.
Is anyone else feeling a bit funny about Uber lately? When we first met and became exclusive in 2012, things were great but lately… it feels like the honeymoon period is definitely over. What started as a passionate love affair — down with exploitative cab companies! Transport for the people by the people! Cheap rides home from the pub! — with a strong vein of are they/aren't they legal, has hit a few rocky patches.
This week, Uber has announced a price cut of 15 percent, which is great for us as riders. But drivers have been quite vocal about that 15 percent coming straight out of their pockets. The price drop will see the price per kilometre drop to $1 and it's been less than a year since Uber dropped their prices by 15 percent in May 2015.
Riding Uber is, save our souls for saying this, is starting to feel a bit like eating McDonalds. It's cheap, it's delicious, but you're very aware that somewhere down the production line, someone or something is being exploited. In this case, it's the drivers who are currently getting a pretty raw deal. As well as providing the infrastructure (in this case, a car less than nine years old) themselves, they also pay for their own gas, maintenance and expenses. Uber drivers in Melbourne are apparently threatening strike action, however this is made difficult because, as independent contractors, they have no union.
Uber have stated they'll make a subsidy to Uber drivers until April 25 to cover their losses which comes in the form of a $30 per hour gross guarantee. Which is pretty good, that is, until April 25. Uber argues that the price will allow "driver-partners" to maximise their earning potential by enticing more customers over to Uber and thus generating more trips. It seems a little bit shady, however, when you factor in the cost of running a car around the clock. We'll see in the coming months if the new scheme actually benefits Uber drivers or if the spin is just that: spin. We've got out eye on you Uber, and don't think you can distract us with puppies and kitties and Messina (although you can certainly try).
Via The Age. Image: Mark Warner.
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