Uber Price Cut Cuts Both Ways, Drivers Say

Drivers at an Uber protest in Long Island City, Queens, said pricing policies forced them to work longer hours.

Over a hundred Uber drivers protested Monday afternoon after the company lowered the prices it charges passengers by 15 percent over the weekend.

Drawn to the Uber offices in Long Island City through organizing efforts on social media, drivers said they were afraid they would have to work a more than 15 hours a day to make the same amount of money as they did before.

“Uber wants us to work 100 hours a week for us to make what we used to do in 60 hours,” said Ender Palmar. A former yellow cab driver, he said his wages decreased since he began working for Uber three years ago.

The protesters demanded the company raise rates again or lower the commission Uber charges drivers per ride, which is generally 20 percent or more. Uber also dropped the rate in 2014. 

Uber lowered the base fare for Uber X and XL services from $3 to $2.55. The per mile rate fell from $2.15 to $1.75, and the minute rate from $0.40 to $0.35. 

"They're just following the playbook for Economics 101," said Carolyn Said, a business reporter at the San Francisco Chronicle who covers the sharing economy. "They're trying to cut prices to spur demand."

Representatives from Uber told WNYC reporters they expected the cuts would not only benefit costumers, but drivers as well. Uber said its data showed that just this past weekend, drivers spent 39 percent less time without a fare and saw a 20 percent increase in hourly earnings compared to two weekends ago.

“But if for any reason the price cuts are not giving drivers more business and better earnings, we will consider changing them,” spokesman Matt Wing said.

Play the audio to hear WNYC Host Jami Floyd interview with Carolyn Said.