In the wake of a 33% rate cut Uber enacted in late January, some Baton Rouge area drivers are now demanding answers from the seemingly faceless tech giant while they search for competitors to work for in the emerging market, Business Report details in a feature from its latest issue.
At a time when Uber has seen an explosion of growth in recent years, drivers in major metro areas across the country are increasingly staging protests against the company, which has cut fares in about 100 cities already this year in a push for even greater growth.
The protests hit home in early February—albeit with little noticeable effect—after the company reduced its UberX per mile charge from $1.35 to 90 cents. The per minute rate, meanwhile, was cut from 25 cents to 15 cents.
Uber says it lowered rates to attract more riders during a time of year that internal data shows is traditionally slower. But it also claims the cuts should be a boon to drivers. That’s because Uber hopes lower prices will lead to an increase in use by riders as well as garner new riders, which the company reasons will lead to a higher frequency of fares, thereby increasing overall pay for drivers.
“They told us, ‘This is good for business. You are going to be making more money,’” says Stephen Rice, who has been driving for Uber in Baton Rouge for about seven months and has a day job in New Orleans. “Every driver I’ve talked to has said just the opposite. We are driving more to make less money.”
Uber says that isn’t so. Nearly a month after the rate cuts were enacted, the company told Business Report that average earnings for Baton Rouge drivers were on the rise, adding the company expects those figures to further increase as more riders take advantage of the cheaper rates. The company declined to provide specific numbers.
Rice acknowledges that he has seen an increase in surge pricing since the rate cut was enacted, but he says it’s not because more riders are using the service.
“A lot of drivers have gotten upset,” he explains. “They’ve stayed off the road.”
Despite the increase in surge pricing, Rice says he’d have to take on more fares to make up for the lower base rates. More fares mean more wear and tear on his vehicle. Rice replaced his tires in August and says the treads are already gone.
The frustration some Uber drivers have with the company has been festering for a while. January didn’t mark the first time Uber cut its rates in Baton Rouge. In early 2015, Uber reduced the per mile charge from $1.85 to $1.35 citing the same strategy: to attract new riders. Compounding the issue was a move by Uber to increase its “safe rides” fee, now called the booking fee, after Uber settled a class action lawsuit with about 25 million riders in several states late last year. The company introduced the fee in 2014, saying it was needed to cover costs for driver background checks, insurance and vehicle checks. In Baton Rouge, the fee went from $1 to $1.75 per ride. Uber passed the extra cost along to riders, but it did not give drivers a cut of the increase.
“Then on top of that, to make matters worse, they continuously tell people not to tip,” Rice says.
Regardless of their complaints or claims of mistreatment, Uber drivers don’t have much recourse against the company other than to simply quit. And there doesn’t appear to be a shortage of people who are willing to take their place and give driving for Uber a try. The company—which is continuously hiring—won’t give specific figures on how many drivers it contracts, but says there are “hundreds and hundreds” in Baton Rouge.
“Instead of trying to retain drivers, they are just worried about having new people on the road,” Rice speculates. “They want a high turnover, I guess.”
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