Alternative cab service Uber is taking as much as 30 percent of fares that some drivers receive for some UberX rides in a new experiment in San Francisco and San Diego.
Drivers who give enough rides each week will see the percentage drop, as the Wall Street Journal noted in its report on the news. But 30 percent is still the most Uber has taken for UberX commissions in the two cities where Uber is running the experiment.
In San Francisco in particular — where Uber has its headquarters — the percentage jumped from 20 percent, or lower, to 25 percent in September, according to Forbes.
The new experiment, which began in April, is only for a small percentage of new UberX drivers operating in San Francisco and San Diego, an Uber spokeswoman told VentureBeat.
And the percentages drop swiftly. In San Francisco, new UberX drivers will be facing a 30 percent service fee for their first 20 rides, after which the fee drops to 25 percent. After 40 rides, the rate goes down further, to 20 percent, the spokeswoman told VentureBeat. In San Diego the rate decrease is similar: The service fee is 30 percent for the first 15 rides, 25 percent for the next 15 rides, and 20 percent for anything past 31 rides.
People driving with Uber for around 40 hours a week can finish 31-40 rides — and activate the lowest service fee — in about two to three days, the spokeswoman pointed out.
Ultimately, this service fee experiment seems like one way for Uber to strive to maintain a supply of drivers in order meet demand in cities where the demand is greatest.
It’s not surprising for Uber to be trying out different mechanisms to increase its revenues. The company earlier this month was reportedly raising money at a valuation of $50 billion — greater than pretty much any other privately held company in the world.
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