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Old May 23, 19, 2:19 pm
Join Date: Nov 1999
Location: Phoenix, AZ USA
Programs: AS-MVPG75K / HHonors-Diamond / Hyatt - Exploroist
Posts: 1,487
Originally Posted by Jaimito Cartero View Post
....Then jumping on the surge to get 50%+ higher prices.
FWIW .... that method of paying drivers for surge ended about 2 years ago.
Drivers no longer earn a set percentage of the fare collected by Uber. They earn set per-mile and per-minute rates.
If demand is high, Uber still charges the passenger a higher "surge" rate. If driver supply is also low, then they will add a set amount to the driver's pay.
It is possible (for example) that Uber maybe charging a 20% surge, but adding zero incentive to drivers. As surge gets higher, part of the reason is a lack of drivers in the area so the driver incentives start showing up. They are typically $2 - $5.

Uber spun this to drivers as an advantage. It used to be that if there was a surge going on that drivers would really benefit on long rides, to the point of playing games to get out of short rides.
With the new system, if the incentive is $3, then the driver gets $3 extra regardless if the ride is around the block versus 20 miles.
While that explanation sounds good, the bottom line is that Uber is generally keeping more of the fare on "surge" rides now that "driver payout" is no longer tied to "fare charged". Uber keeping 50+% of the fare is not unusual.
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