Fares are increasing so you can up your earnings
Starting February 8, the fares that you charge riders will increase for trips in your city, which should increase your earnings. The UberX fares will change in 3 ways1:
1. Increased base fare
By increasing the base fare from $1.90 to $2.50, your earnings should improve on every trip you make.
2. Improved Time and Distance rates
Time rates are increasing from $0.19 to $0.30 per minute, while distance rates are decreasing from $0.79 to $0.70 per kilometre.
3. Increased minimum fare
The minimum fare is increasing from $6.80 to $7.00, which will improve earnings on shorter trips.
Rates for other rides options such as Uber Green, Uber XL, Uber Comfort, Uber Premier, Uber Pet and Uber Connect that may be offered in your city are also changing by the same relative amount.
Driver earnings per trip are anticipated to increase by 13% on average 2
The following examples highlight the impact of this fare increase on your earnings at a trip level:
- Short Trip: For a trip from the Montreal Museum of Fine Arts to the Notre-Dame Basilica (~3km) that takes 10 minutes to complete, driver earnings are anticipated to increase by ~23% 2.
- Medium Trip: For a trip from the Bell Centre to the Montreal Insectarium (~10km) that takes 20 minutes to complete, driver earnings are anticipated to increase by ~14% 2.
- Longer Trip: For a trip from the Fairview Pointe Claire Mall to the Carrefour Laval mall (~25 km) that takes 30 minutes to complete, driver earnings are anticipated to increase by ~6% 2.
Look forward to the opportunity for improved earnings when these changes take effect on February 8.
FAQ
- Why was the distance rate decreased?
The combination of the increase in the Time rate, the Base Fare and the Minimum fare, and the decrease in the Distance rate should lead to an increase in the average fare per trip. The previous balance between Time and Distance rates resulted in relatively lower fares for short trips as compared to longer trips. The purpose of rebalancing the Time and Distance rates is to have more relatively even fares across short and long trips, while also increasing average earnings per trip across the board. As such, the new rates provide drivers increased revenues while maintaining affordable rides to promote demand.2
- With distance rates going down, are longer trips now less profitable?
No. Fares for longer trips are now in general higher than with the previous rates. While the distance rate was reduced by 11%, we estimate that the increase in other components of the fare results in increased earnings for long trips (the time rate was increased by 58%, the base fare was increased by 32%, and the minimum fare was increased by 3%). For example, driver earnings are expected to increase by 6% on average for a 25 km trip that takes 30 minutes to complete.1,2
- How is the estimated increase in driver earnings calculated?
Using recently completed trip data, the average driver earnings are calculated using the previous and the current rates. The anticipated average increase of 13% is calculated by taking the difference between these two values.2
(1) Rates are for UberX. Rates for other rides options, except the COVID-19 Kit Return, are changing by the same relative amount. Please see the latest terms for improved rates of all rideshare options.
(2) Based on estimates, assuming the same distance, duration and surge levels as current trips. May vary per city. Not a promise or guarantee of future earnings.
Posted by Anas Ettahiri
Get a ride when you need one
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Get a ride when you need one
Start earning in your city
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