Rebel Honey Badger
July 25, 2021
Uber is now showing California drivers the full fare that riders are paying, including fees, following a report in Mission Local on the previous discrepancy.
Riders were being charged a higher amount than what drivers were seeing as the listed fare. An Uber spokesperson said the extra charges were related to Prop 22, the gig company-backed measure that made Uber drivers independent contractors and provided some benefits.
“We are constantly seeking feedback from both drivers and riders. As a result, we have changed our policy and drivers will now see the driver benefits and marketplace fees which were previously only shown to riders,” an Uber spokesperson said in a statement. Uber said the changes were in the works before the report.
The changes apply only to California, because other states don’t have Prop. 22 benefits and only have booking fees, Uber said.
Prices from Uber and Lyft have surged amid a driver shortage and increased demand as pandemic restrictions have eased.
Last month, the Washington Post reported that drivers aren’t seeing the benefits of price increases, because Uber pays them a rate determined by time and distance, plus a surge bonus.
Uber disputed that, with CEO Dara Khosrowshahi writing in response on Twitter that drivers are getting a “higher cut of the fare hike.” He wrote that gross spending from California riders more than doubled in May compared to January, increasing by a multiplier of 2.2. and drivers received 2.6 times what they previous were earning.
California drivers’ gains outpaced national increases in May compared with January, when riders spent 1.7 times as much and drivers earned 1.8 times as much, he wrote.
“Bottom line: the increase in the ratio of pay was higher in CA than nationwide,” Khosrowshahi wrote.