Uber tweaks incentive payout in India to make sure drivers don’t cancel on you

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08-Sep-2016

 

Ride hailing company Uber has modified its incentive structure to make sure that drivers cancel fewer bookings.

Until recently, drivers were incentivised based on the number of rides they completed in a day. In the new method, incentives are calculated based on the total fare a driver manages to get in a day.

Drivers often cancelled on Uber users earlier, if the destination was ‘too far’ or there was heavy traffic on a particular route. This was to be able to complete as many trips in a day as possible. Under the current incentive system, however, drivers are incentivised if they make longer trips, as more distance ensures a higher fare (Read how Bengaluru’s insane traffic is chipping away at cab drivers’ incomes).

At least four drivers FactorDaily spoke to confirmed Uber’s move. None of them were too happy about the new incentive structure as they claimed that their total earnings have come down after this change.

Mahesh (last name withheld on request), an Uber driver in Delhi, explained that as per the new incentive calculation policy, if a day’s work for him amounts to a total fare of Rs 2000, he is eligible to get around Rs 4000, of which 25% goes to Uber in the form of commission and taxes. In the earlier methodology, he’d get Rs 4000 for doing 10 trips, Rs 5500 for 13 trips, and Rs 7500 for 17 trips (less 25%).

In the earlier methodology, he’d get Rs 4000 for doing 10 trips

Of these trips, a certain number had to be during peak hours (6 am to 12 noon and 5 pm to 11 pm) to be eligible for incentive, he said. For instance, to be eligible for the 17-trip incentive, 13 had to be during peak hours; for the 13-trip one, 10 and so on.

“We are always striving to create more opportunities for drivers to earn more money. We are constantly testing out new promotions, bonuses and other temporary experiments,” an Uber spokesperson said.

The copy has been updated to reflect Uber’s response

Also watch: What happens when you press the panic button in an Uber or Ola cab. 

Lead Image: eskay / Shutterstock.com


FactorDaily is owned by SourceCode Media, which counts Blume Ventures among its investors. Blume Ventures is also an investor in Dunzo. None of FactorDaily’s investors have any influence on its reporting about India’s technology and startup ecosystem.


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