I'd kind of forgotten about the fixed pricing thing, but looks like that's combined with the increased demand and driver shortages to give more power to drivers. And also causing some of the surge-pricing, I'd imagine - fares not so fixed if they're surging, presumably
Uber drivers get the power to kick customers to the kerbhttps://www.thetimes.co.uk/article/uber ... -m9lbd8jbnIn the recent, golden age of Uber, affordable journeys were never more than a click away and drivers had to hustle for work from the phone app.But the tables have turned, putting Uber workers in the driving seat and leaving passengers waiting on street corners.
In a rare interview Jamie Heywood, Uber’s general manager for northern and eastern Europe, admitted the cab-hailing service was suffering “higher driver cancellations”. Waiting times have risen in peak times in busy areas: 35 per cent of cars take five or more minutes to arrive, he said.
Some of these problems can be traced back to a decision by Uber to introduce “upfront pricing” last October, giving driver and passenger a fixed price for the journey. It is meant to be fairer than the previous system of an estimated price range, but drivers say they lose money if traffic is heavier than expected or if they must make a diversion. The price is revised upwards only if they have to drive at least 40 per cent further or for 20 per cent longer than calculated.
It can take a while to work out if a job is worth accepting. Drivers suffer no penalty if they reject it. Many also work for one or more of Uber’s rivals, so they can scroll on through other, better offers and ditch a fare to avoid risk.
Demand for Uber has risen 20-40 per cent in some cities since the end of lockdown, says Heywood, as many people seek to avoid public transport. It has left him looking to recruit an extra 20,000 drivers to add to the 70,000 regulars.
They will be joining a firm with a very different culture from the disruptive tech giant blamed by Labour politicians for creating a “precariat” of gig economy workers. The Supreme Court ruled in February that they must be treated as workers, rather than self-employed, and Uber decided to offer drivers holiday pay, a pension and a guarantee of earning at least the national living wage.
Sam Raciti, regional manager of western Europe for Bolt, said: “The most important thing to drivers is how much they earn. It sounds like Uber is experiencing low driver sign-ups, high cancellation rates and increased wait time. We’re not. This suggests it’s them that need to match the terms we offer, not the other way around.”
Bolt says it has 65,000 drivers, who earn an average £19.60 an hour including waiting time.
James Farrar, the union organiser who successfully took Uber to court, said: “The golden age of instant demand at cheap fares is over. Uber fares are operating at half the price of a regulated tariff for London black cabs. You have to understand those fares are unsustainable and exploitative.”
Uber’s challenge is to hold down prices at a time of greater workers’ rights and Waitrose offering up to £53,780 for HGV drivers. Tony Travers, director of LSE London, a research centre, said: “Labour shortages are going to push up the price of everything, including cab rides.”
He does not, however, believe that all the consumer gains of the past decade will disappear. “Point-to-point delivery, easily paid for, and women not having to stand around in the street, trying to find a taxi late at night. That was a huge benefit and I think it will continue.”
Login
Register
FAQ
