Uber is testing a new earnings algorithm in 22 cities in the United States, hoping to earn more drivers than it lost during the pandemic, gave Learn about Automotive News.
Changes being implemented in pilot programs allow drivers to see payment and destinations before accepting a trip and the algorithm increases incentives for drivers to take trips short.
Changes represent the most extensive updates to Uber’s driver payment algorithm in years and do not imply changes in fares for passengers.
According to information, drivers have long demanded to be able to see the fare and the destination before accepting a trip, but Uber has resisted, arguing that this option could influence drivers to choose trips or discriminate against passengers in disadvantaged neighborhoods.
“We believe that this characteristic stica really improves the competitiveness of our platform against others“said Dennis Cinelli, head of mobility for Uber in the United States and Canada, emphasizing that
salary changes would not affect consumer prices.
Cinelli said the company had not seen any discrimination from drivers in California since the modality was launched there in 2020.
“Otherwise, we would not have implemented it at this time,” Cinelli said, adding that Uber had the ability to turn off drivers who repeatedly decline rides based on race or low-income areas.
Providing drivers with advance payment details meant the company also had to reduce earnings for longer trips to prevent drivers from avoiding short trips, Cinelli said.
Uber said data from some cities with pay in advance has m Shown an average increase of 22´% in driver earnings for trips where the distance to the pickup location is longer than the trip in Yes. The test has been implemented in cities in Texas, Florida and the Midwest.
Some drivers have complained that the new algorithm seemed arbitrary and does not allow them to calculate the payment per mile. But others commented that the advance fare information allowed them to select only higher paying trips, and that they have made higher profits since the altered algorithm was launched.
Expansion will depend on the results, “ If we don’t see that it attracts and retains drivers, we wouldn’t implement it anymore,” Cinelli said.
You may also be interested in:
– From Uber driver to pool cleaning company owner for $89,000 per year: the strategy to be a successful entrepreneur
– Poll: New York Has the Rudest Uber Riders
– Uber Will Offer 50,000 Tesla cars to their drivers in the United States