Uber testing will start in 24 US cities
Oh Uber The company said Friday it is testing a new revenue algorithm for drivers in the United States that will allow drivers to pay and see destinations before accepting travel and increase incentives for drivers to make shorter trips. The test will be conducted in 24 cities across the United States.
The changes, currently in pilot plans, represent the most comprehensive update to Uber’s driver tariff algorithm over the years, and come as the company tries to beat back drivers who left the app earlier this year. International spread. During this period, consumer payments will not be affected by the choice of partners.
Drivers have long demanded the ability to see the fare and destination before accepting a ride, but Uber objected, saying offering such options to drivers could result in fewer rides or discrimination for passengers in backward environments.
Uber already has a similar plan in California, launched in 2020. But the company said its latest pay bill in the United States was unrelated to regulating temporary workers. Tests were launched in Texas, Florida and the Midwest, where temporary labor reforms were not on the agenda.
The work of Kick work (Informal economy) is very competitive, not only with LiftBut with other platforms, we think this feature really enhances our site’s competitiveness than others, “said Dennis Cinelli, Uber’s Mobility Head in the US and Canada.
Cinelli said the changes in how tariffs are viewed at this point will not affect consumer prices, adding that the changes are “not financial aspects”.
Uber declined to comment on the financial impact of the changes for the company, which would have to incur higher costs for shorter trips.
Cinnelli said the company has not seen any discrimination from drivers in California since the policy was introduced in 2020.
“Otherwise, we would not have started this time,” he said, adding that Uber has the potential to disable drivers who refuse rides or repeat rides based on low-income areas.
With this first pilot, Cinelli said the company should reduce revenue for longer trips in order to avoid shorter trips by providing advance payment details to drivers.
Data from some cities that already have this fare visualization model shows an average 22% increase in driving revenue for trips that are longer than the distance to the pick-up location, according to Uber.
Driver responses were mixed in some online groups. Some complained that the new method was arbitrary and was not allowed to calculate wages per mile (or even a kilometer).
Kevin Hernandez, the driver for the processor, who works in Houston, Texas, said: “My income has already been wiped out by higher gas prices, and now Uber is taking even more money from me on longer trips.
Other drivers in the online groups were allowed to select only high-paying rides with advance payment information, and many drivers have shared screenshots of revenue increases since the modified algorithm was released.
There will be expansion depending on the partners. “If we don’t see driving attraction and retention, we (the test) will not expand further,” Cinelli said.
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