A Redditor claiming to be a former UberEATS driver has posted to the /r/toronto subreddit stating that Uber informed all UberEATS Toronto drivers via email last night of a change to its payment model — resulting in significant pay cuts to drivers.
Under the old UberEATS payment model, drivers were paid $1.80 per kilometre travelled and paid a flat rate of $6.50. Uber would take a 35 percent cut from the order.
Under the new model, drivers are paid $1.05 per kilometre travelled, $2.90 for pickup and $2.50 for dropoff. Uber will continue to take a 35 percent cut from the order. The decision to get rid of the $6.50 flat fee is apparently what will cause a massive reduction in pay for drivers; under the old model, if a driver picked up multiple orders from one restaurant, they would be paid a $6.50 flat fee for each order.
Now, even with multiple orders at one restaurant, drivers will be paid a flat $2.90 fee for pickup. Here’s a more succinct version of the new payout terms from the Reddit post:
Old UberEATS payout terms: Time = $0 per km Distance = $1.80 per KM -35% Uber deduction Flat rate = $6.50 – 35% Uber deduction
New UberEATS payout terms: Time = $0 per km Distance = $1.05 per KM – 35% Uber deduction Pickup = $2.90 – 35% Uber deduction Drop off = $2.50 – 35% Uber deduction
According to the Redditor, the payment changes could alter driver pay by as much as 30 to 50 percent across the board. It’s unclear if Uber will enact the changes across its North American delivery operations, or if the change is limited to Toronto (UberEATS currently also operates in Ottawa and Edmonton, according to the company’s website).
BetaKit has reached out to Uber for comment.
Uber has responded to BetaKit’s request for comment.
“UberEATS delivery partners work hard everyday to bring meals from local restaurants to customers. In order to ensure consistent earnings, we have introduced new a delivery fee boost based on when and where partners deliver. Delivery fees are now made up of three parts – a pickup fee, a drop off fee and distance fees. Maximizing delivery partner earnings is a priority and we will continue to work to ensure a competitive income for all our partners.”
Uber will be introducing a ‘Boost’ function, which will see delivery partners’ fares multiply depending on when or where they deliver; when an Uber driver picks up an order at a restaurant, they receive a boost multiple for the zone that the restaurant is in. Uber ridesharing services won’t be affected by the changes.
BetaKit has followed up for information about how much Boost will add to fares, and how the Boost function will work.