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