Last month, in response to a new law in California, we announced changes to protect and enhance your ability to work flexibly and on your own terms. As a first step, all California drivers now see estimated earnings and trip destination up front before accepting a trip.
As a next step, we’re simplifying our fare structure to further clarify the relationship between you and your riders, and Uber’s role as a technology platform. While time and distance rates have not changed, some of these changes, especially those we’ve made to promotions, may take some time to get used to.
What’s changing?
The Service Fee that you pay to Uber won’t exceed 25% for UberX trips
Starting this week, Uber’s Service Fee on UberX trips in California won’t be more than 25% of the trip fare and will be shown in advance on your offer card. The final trip fare will be calculated at the end of the trip, and it will be based on the actual time and distance of the trip.
Your trip receipt will show the trip fare, Uber’s Service Fee calculation, and your take-home earnings.
Note: A 28% Uber Service Fee will apply to all UberXL, Comfort, SUV and Lux trips.
Trips with Surge will now be calculated as multiples of the trip fare
During busy times and in places where a lot of riders are requesting trips, your map will now show Surge multiples instead of fixed dollar amounts.
For trips beginning in these zones, you’ll earn a multiple of the trip fare, which will be included in the estimated earnings range on your offer card. Your trip earnings will be based on the same Surge multiple that the rider pays.
On Pool trips, you’ll see the exact amount you’ll earn for every completed pickup, before you start the trip
Unlike the estimated range you’ll see on UberX trips, your offer card will show the exact amount you’ll earn for every Pool pickup.
Every time a new rider is added to your Pool trip, you’ll also see the additional amount you’ll earn, as well as each rider’s destination.
The Service Fee on UberPool trips is based on factors such as whether you match with additional passengers and how much time on route is shared between passengers.
Promotions will now offer a lower Uber Service Fee (only in participating cities)
Previously, if you drove in a city where Quest promotions were available, you were offered a payout when you completed a certain number of trips in a given period.
Starting next week, if you complete a certain number of Quest trips, you’ll pay Uber a lower Service Fee for the remaining trips you take in that period—which means that you can take home more of your earnings. For example, if you choose a 50-trip Quest and complete 75 trips, you’ll get a lower Service Fee for the last 25 trips.
We’re also replacing the Consecutive Trips promotion with a new promotion called Boost. With Boost, you’ll have the chance to lower Uber’s Service Fee by completing trips in certain locations during busy times of day. Unlike Consecutive Trips, Boost won’t have a minimum trip requirement. Any Service Fee reductions you receive through Boost will always be in addition to those you get with Quest, but the Service Fee will never be less than 1% of the trip fare.
If you drive in participating cities, we’ll send you more details about how Quest will work on Friday, January 10, and more about how Boost will work on Sunday, January 12.
Delivering with Uber Eats
We’re launching similar features that provide upfront information on Uber Eats. When you deliver with Uber Eats, you’ll see estimated earnings and trip information before you accept the trip. You’ll also be able to identify your preferred restaurants and that information will be shared on the offer card, so you have even more info before you choose to accept a delivery trip.
- What is changing about Uber’s Service Fee?
We are simplifying our fare structure to further clarify the relationship between you and your riders, and Uber’s role as a technology platform. Starting this week, Uber will take a fixed percentage Service Fee on the fare that a rider pays you on every trip (UberPool excluded). On UberX trips, this fee will be 25%. On other trip types, such as UberXL, Comfort, SUV, and Lux, this fixed service fee will be 28%. See information about UberPool Service Fees below under “How are Service Fees calculated for UberPool trips?”.
- Will I know what Service Fee I’m paying to Uber before the trip?
Yes. On the new offer card, you’ll be able to see the exact percentage Service Fee that Uber will charge on every trip, right below the estimated fare range (UberPool excluded). This will be the same Service Fee that you’ll see on the trip receipt.
- What is the service fee, and why does Uber charge the driver?
The rider pays you, the driver, a fare for every trip. Uber then charges you a fixed-percentage Service Fee on that fare for your use of the Uber app in connecting you with your passenger. The Service Fee goes toward funding our platform’s operations, and supports innovation that allows Uber to connect more riders and drivers.
- How will this change in the fare structure impact my earnings?
For non-Pool trips, you will continue to earn based on the actual time and distance of the trip. Time and distance rates haven’t changed and you will continue to earn as normal. Uber’s Service Fee will not exceed 25% for UberX trips, and it will not exceed 28% for UberXL, Comfort, SUV, and Lux trips.
- What’s changing with Surge pricing?
The amount you earn for Surge will now match the amount a rider pays in Surge on every trip, less Uber’s fixed Service Fee. This means that drivers will now earn multiples of the fare (base, time and distance) when it’s busy and riders pay more for a trip. You will be able to see the Surge multiples (e.g. 1.8x) highlighted in orange on your map.
- Is the Surge amount included in the fare estimate?
Yes, the fare estimate you see on the offer card will include any Surge multiples that are being applied. You’ll also see the Surge icon next to the fare range to indicate that Surge is being factored into the estimate.
- What’s changing on UberPool?
For Pool trips, you will now see an exact fare, rather than an estimated fare range, on every trip offer card. This exact fare is based on our best estimate of the time, distance, and likelihood of finding additional passengers to join your Pool trip. On subsequent pickup opportunities within each Pool trip, you’ll see another offer card that will include additional fares for completing each leg of the trip.
- Are my earnings changing for additional Pool pickups?
Yes. Previously, you earned a small fixed amount for every additional passenger you pickup on your Pool trip. Starting this week, you will earn for each additional passenger’s fare that you pick up, less Uber’s Service Fee. You’ll be able to see the exact amount you can earn for each Pool leg, as well as their pickup and dropoff locations, on every Pool offer card.
- How are Service Fees calculated for UberPool trips?
The Service Fee on UberPool trips will vary based on the efficiency of the match. This is based on factors like whether or not you match with additional passengers, how many passengers, and how much time on route is shared between passengers. The Service Fee will not exceed 45% on any individual Pool segment, and will be clearly displayed on your receipt.
- What happened to the Booking Fee, and why isn’t it on my trip receipt?
Until January 2020 in California, the Booking Fee was a flat fee charged to the rider on your behalf that Uber collected from you. As of January 2020, Uber charges a separate fee (called the Marketplace Fee) to riders directly, to connect parties within the marketplace. This fee is separate from the trip fare or any other rider payment to the driver, and does not impact the amount you take home on each trip.
- Why is the promotions structure changing?
Because drivers are Uber’s customers, Driver promotions will now come in the form of lower Service Fees rather than additional direct payments to you. Now you can earn reductions in your fixed Service Fee percentage, to as little as 1% of the trip fare.
- What is different about the new Quest promotion?
The new Quest promotion for drivers in California will allow you to earn a lower Service Fee after completing a predetermined number of trips. This will replace the old version, where you could earn a promo payment for completing a certain number of trips. You’ll still be able to choose a Quest that’s best for you during every selection window, and the promotion periods are not changing. If you do not choose a Quest offer before the selection window closes, you will not be eligible for the lower Service Fee promotion for that period.
- What is a Boost promotion, and how is it different from Consecutive Trips?
The new Boost promotion will allow you to earn a lower Service Fee on trips in busy times and places. The promotion times, locations, and Service Fee reductions will be outlined in a weekly email, and will also appear on your map and offer card when active. This will replace the Consecutive Trips promotion, in which the terms required you to complete three trips in a row during specified times and places in order to earn a promo payment. Unlike the new Quest promotion, you won’t need to take any other action to activate your Boost promotion.
- Why is Uber making these changes?
These features are in response to feedback from drivers and the passing of new laws in the state of California. Some changes will take some getting used to. On balance, we are confident that they will improve your experience on our platform.
- Are these features only available to drivers in California?
Yes, these features are available to California drivers only. As with all feature launches, we will monitor the effects of the change to ensure the experience is working properly and doesn’t create any unintended issues for drivers or riders. We will continue to evaluate expanding these features beyond California in the future.
Posted by Uber
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