Uber drivers claim they are earning ‘significantly’ less after the company ‘deceived’ them into taking pay cuts.
The popular ride-share business recently changed the way they give estimated prices to potential customers, due to a rise in competition.
Instead of Uber estimating a ride fare will fall between two prices, the company now gives a specific figure, and drivers claim that has dramatically affected their earnings.
Uber drivers claim they are earning ‘significantly’ less after the company ‘deceived’ them into taking pay cuts after the introduction of upfront pricing for customers
Instead of Uber suggesting a particular ride fare will fall between two prices, the company now gives a specific figure which drivers claim has dramatically decreased their earnings
Many of the company’s drivers said they were forced into signing amended contracts after being promised ‘more trips’ but instead were earning ‘significantly’ less on every journey, according to ABC News.
One driver, who had been with the company for two years, claimed he was losing an average of $28 weekly.
‘This is wage theft – nearly 90 per cent of the time, the company underpays me by 50 per cent per trip, and up to $4,’ another driver claimed.
Uber drivers alleged the ride-share business was paying them according to the upfront estimate given to customers, not the figure on the meter which was usually higher.
The meter figure increases above that estimate due to unforeseen events like traffic jams, passengers wanting to stop for food or pick up friends along the way.
However, the Uber website stated the ‘upfront pricing for riders does not change the way surge works’ and ‘prices will continue to vary when demand is high’.
Disgruntled employees claimed customers were worse off under the new system because they could be paying more than they would have with a ‘time and distance charge’.
One driver, who has been with the company for two years, claimed he was losing an average of $28 weekly and said they new system leaves customers ‘worse off’ (stock image)
‘Upfront Pricing is calculated using the expected time and distance of the trip and local traffic, as well as how many riders and nearby drivers are using Uber at that moment,’ according to Uber’s website.
‘When fares go up due to increased demand, instead of surge lightning bolts and pop-up screens, riders are given the actual fare before they request their ride.
‘There’s no complicated math and no surprises, passengers can just sit back and enjoy the ride.’
An Uber spokesperson told Daily Mail Australia they wanted drivers to be ‘successful’ in using the app.
‘More affordable rides means more trips for drivers and less wait time between trips,” the spokesman said.
‘Discounted fares for riders are promotional and are marketing activities by Uber, and do not reduce the fares received by driver partners.’