In Tampa Bay, rates have been cut approximately 30%:
Uber's New Rate Schedule for TampaBase Fee: $1
Per Mile: $.65
Per Minute: $.11
Here's what veteran drivers receive after Uber takes its 20% commission:
Base Fee: $.80
Per Mile: $.52
Per Minute: $.088 ($5.28/hour)
Here's what new drivers receive after Uber takes its 25% commission:
Base Fee: $.75
Per Mile: $.4875
Per Minute $.0825 ($4.95/hour)
A couple notes about these fees. First, drivers are only paid when a passenger is in the car. Time and mileage between rides or en route to a ride request is NOT paid. Second, these are the GROSS Rates drivers receive, before vehicle expenses. From these rates drivers must deduct fuel, depreciation, repairs/maintenance, insurance, cleaning supplies, self-employment taxes, income taxes, etc.
The new rates represent a 75% discount to what taxis charge in Tampa Bay. A 75% discount for a superior product.
I can no longer earn money driving for Uber. Prices must be surging 1.5 times just to equal the old rates, which no one would argue were already very low. Most people would favor Uber even if Uber's rates were comparable to taxis, since the service is so much better than taxis besides the cost of the ride. For now, I will focus on driving for Lyft until they decide to match Uber's rates. Uber is offering driver's guarantees temporarily, but even those are very low. For example, during non-peak periods, the guarantee is $10/hour before Uber's commission; after the commission it is $8/hour for veteran drivers and $7.50/hour for new drivers. This is the GROSS amount, before drivers take out expenses.
Knowing this, how can a customer order an Uber with a clear conscience? Aren't they preying on the ignorant driver who isn't smart enough to realize how much money he is losing? Is it ethical to take advantage of another person's ignorance?