Is Uber’s new Advantage Mode really rewarding top-performing drivers?
NYC drivers report wage cuts due to rideshare app lockouts during low demand. A racial bias lawsuit against Uber was dismissed, while InDrive and Didi drivers in Latin America earn competitive wages, varying by country. We break it down for you.
Uber Introduces Advantage Mode, Rewarding Drivers With High Acceptance, Low Cancellation Rates 🚗💰
SOURCE – Uber
Uber is piloting a new program called Advantage Mode that rewards drivers with high acceptance rates, good driver safety scores and low cancellation rates by offering more exclusive ride opportunities and a 5% bonus on select rides.
- Uber will analyze drivers’ performance daily, giving drivers with an acceptance rate of over 25%, a cancellation rate of under 8%, and a driver rating of over 4.85 more exclusive rides and bonuses. Uber will also eventually consider safety scores.
- A big thank you to @DodgersATX on X.com for giving Sergio the scoop, as Uber accidentally sent this update out into the wild before officially announcing it this week.
- “It ain’t gonna move the needle on my $3 minimum fare trips, which is 15 cents extra, Uber, with no incentives. It ain’t gonna move my needle to become an ANT,” said RSG Senior Contributor Sergio Avedian on this week’s episode of Show Me The Money Club. Watch Sergio and Chris discuss this topic on “Show Me The Money Club.”
- Sergio also noted that this program might not be available in all markets due to rideshare legislation. For example, in California, Prop 22 would prevent the implementation of this feature.
Rideshare Companies Are Locking Out NYC Drivers Mid-Shift to Lower Minimum Pay 🔒🚕
SOURCE – Bloomberg (via MSN)
In New York City, Uber has started locking drivers out of its app during periods of low demand to fight a minimum wage rule, and Lyft is threatening to do the same. As a result, some drivers claim that their wages have fallen by as much as 50%. Lockouts are aimed at limiting how much non-passenger time drivers can log and be paid for, as required by a six-year-old pay rule.
- The lockouts occur unpredictably, making it difficult for drivers to plan work shifts and earn stable incomes. Uber claims that platform access is based on rider demand, temporarily shutting drivers out if demand drops too low.
- Drivers report needing to work much longer hours to make the same wages as before the lockouts. The New York Taxi Workers Alliance criticized Uber for mismanaging hiring and unfairly penalizing drivers.
- Uber and Lyft have each blamed TLC’s regulations and each other for the lockouts, while Lyft indicates it may soon implement similar driver freezes.
Appeals Court Dismisses Racial Bias Lawsuit Against Uber ⚖🚫
SOURCE – Reuters
The 9th U.S. Circuit Court of Appeals dismissed a proposed class action lawsuit that accused Uber of racial bias in its driver rating system. The court ruled that Thomas Liu, the driver who filed the lawsuit in 2020, failed to provide evidence showing that Uber terminated non-white drivers at a higher rate than white drivers with low ratings.
- Liu, deactivated after his rating fell below 4.6, claimed the rating system discriminates against non-white drivers in violation of Title VII and California anti-discrimination law.
- The 9th Circuit agreed with the lower court’s finding that a survey by Liu’s lawyers showing statistical disparity among drivers had numerous flaws.
- Uber did not immediately respond to the ruling, while Liu’s lawyer expressed deep disappointment and considered asking the court to reconsider.
DoorDash’s Acquisition Talks with Deliveroo Fall Through 📉❌
SOURCE – Reuters
DoorDash recently engaged in talks to acquire European food delivery giant Deliveroo. However, the discussions ended due to disagreements over valuation. There are currently no ongoing talks, according to sources.
- Previously, Doordash considered acquiring Deliveroo in 2022 and has reportedly been looking to expand beyond its core U.S. market. The company’s acquisition history includes buying Finnish rival Wolt in 2021 for $8 billion.
- Analysts suggest a takeover of Deliveroo remains strategically and financially appealing, hinting that similar headlines may reappear soon.
How Much Are InDrive and Didi Drivers Making in Latin America? 💵🌎
SOURCE – Bloomberg Linea
Uber has a significant market share in Latin America, but drivers for inDrive and Didi are also earning competitive wages, according to new insights from The Paddock.
- Here are the averages for each Latin American market: Colombia: $8-9 per hour, Mexico: $6-7 per hour, Chile: $10-12 per hour, Other Countries: $5-10 per hour.
- “The earnings are definitely close to reality based on our experience in the industry and renting vehicles to drivers. We’ve found that drivers in the top 3 Mexican cities earn about $7-8 USD per hour while working on ride-hailing apps, and drivers in other cities are around $6-7 USD per hour,” said Jose Carlos Aguilar, Director of Operations at Mi Nave. On a recent episode of the RSG Podcast, Harry spoke with Jose Carlos Aguilar to discuss Mi Nave and the rideshare landscape in Latin America.
QUICK HITS
🚗 In a recent short, RSG Senior Contributor Chris Gerace discusses the future of rideshare in a world without car ownership. “You’ll always have a car that you need, when you need it, it just won’t be your car and it won’t be sitting in your garage. I’ve seen enough sci-fi movies to see where car ownership is going,” he said. – YOUTUBE SHORTS
This week on X.com, Harry discussed Uber’s partnership with Cambridge Mobile Telematics on safe driving scores, highlighting how the company is finally incentivizing drivers for safe driving through the “Advantage Mode” program.
💰In the past four years, U.S. rideshare prices have fluctuated significantly, according to insights from Obi’s rideshare report. A $30 Uber ride in 2020 rose to $35 in 2021, $37 in 2022, and then decreased to $33 in 2023. Prices are projected to be $31.50 in 2024, marking a 5% increase over the period. Influencing factors include gas prices, inflation, and efforts toward profitability. – MSN
Must Listen Or Watch RSG Content
Here are this week’s featured podcast episode and YouTube videos:
- RSG257: Rideshare Insider’s Take on DiDi, Uber and InDrive in Latin America
- Lyft Adding MORE Transparency Features
- Blackwolf Rideshare Expanding And Revel Changing Their Model
- Uber ADVANTAGE Vs STANDARD Mode With Driving Scores
- The Rideshare Guy en Español
- Make sure you Subscribe so you don’t miss out on future conversations and interviews!
