Uber Now Charging San Francisco Drivers A 30% Fee

Ride-hailing service Uber has recently rolled out a trial fee structure for its new drivers in the cities of San Francisco and San Diego, requiring them to pay as much as 30% of their fares. It is an increase from the 25% that current drivers must pay, and for the testing period will only apply to UberX drivers. The fee is actually on a tiered system, so drivers will see the percentage reduced depending on how many rides they give.

Drivers in San Francisco will see their commission rate start at 30% for their first 20 rides, then reduced to 25% for the following 20 rides, and once they've given over 40 rides it will drop to 20%. San Diego drivers have a little bit easier, as the rates will decrease after every 15 rides.

The new maximum fee of 30% marks a new high for Uber, which just last September increased the drivers' fee in San Francisco from 20% to 25%. However, a spokeswoman for the company says the new system "offers a structure where drivers have the opportunity to earn more based on the number of trips they drive." She added that most drivers working 40 hours a week have given 31-40 rides within their first two or three days.

Currently this fee structure is only applying to UberX drivers who started working for the company after April 1st. Uber has yet to decide to expand the trial to other cities, and it's not clear how the increased fee has been received among new drivers. Many drivers were upset when the fee was increased from 20% to 25%, complaining that the amount they earned per passenger was cut by as much as 25%.

SOURCE Wall Street Journal