# Update on the Chicago Scene (Reduced Pay, Ride Incentive, Device Charge)



## UberPissed (Aug 13, 2014)

Hello all - new to the forum. Just wanted to give an update on what is happening in Chicago. Long post, sorry, but I think I have a lot of insights worth reading, especially at the end.

For a lack of better terms, Uber is complete sh*t and I am glad I only do it part time. Here is a recap of the last month:

1. Ride Incentive ended - they claim they sent the email. I keep all of their emails, and I didn't get it. They say they sent it. I asked not to be compensated, but to at least explain how I didn't get the email (Spam, incorrect info on file, etc.) however they just towed the line and said they sent it. 

2. Software not working well - During lollapalooza, they guaranteed a payout, but the terms were that you had to work 18 or so hours, and had to accept either 80 or 90% (I don't recall specifically). Well.... a bulk of my trip requests were 15-18 minutes away....IN CHICAGO. You are telling me the closest driver is me, 15 minutes away? GFY

3. Device fee - $10 per week. This has already been lamented ad nauseum on the forum - 'nuff said.

4. Lowered rates .... HOORAY! Your Uber fare is now 15% less than normal, which means you pay close to the summer discount of 25% off, but now we are passing that lost revenue to the driver.

5. Higher Commission - now taking 20% as opposed to 15%.

Thoughts - Ok, first, all of these changes probably have a valid business reason to do so. But could the fine folks at Uber not do them 3 weeks apart? Who the F is running that place? Driver ARE getting disgruntled. I am very pleasant to my clients - I have a 4.84 rating, and I drive during "ratings killings hours" as well. 

I educate passengers that they will see driver be increasingly unhappy - and explain what they have done to drivers. I put a nice spin on it so I don't seem like a negative Nancy. A lot of people have no idea how the system works. If i see someone with a 5 star rating - odds are, they are new. I explain the rates, and tell them that "tipping is apparently included, but it sure is nice to get a tip for good service." I have done 275 trips in 10 weeks, and since using that last line, I received 3 tips in the last week (probably 15 rides). Prior to that I received 2 tips in the other 260 trips. 

Speaking of tips - I may be new, but are they taking commissions based on our tips as well. In other words, if we get a $20 fare, of which $4 was a tip, do they take 20% commission from the pre-tip, or post-tip? If the latter, then Uber better lube up and grab their ankles - this happened to Starbucks a while back (sorry, I am a newbie, and it wont let me include links, just google "Starbucks Workers Tips Suit Scores $14 Million Win Against Coffee Giant."

Taxes? People - make sure you keep a contemporaneous mileage log. If it is not contemporaneous, the IRS could disallow the entire amount. Also, educate yourself on what IS and what ISNT an allowable expense (e.g., you cant claim car payment, insurance, repairs, etc if you claim the standard mileage rate, and you can't claim meals, despite everyone thinking you can. You can deduct water and any supplies that you have in the car). 

Last, I heard that Uber is really trying to boost revenues for their upcoming IPO, and that they will be doing whatever it takes to get this number inflated upwards so their valuation is high, for what its worth.

At the end of the day, its a good racket, provided you can strike when the fire is hot. I think it is borderline criminal how Uber enticed many people to go through their preferred financing program, and then pulled the rug from underneath you by lowering fares and payouts. If you have a car based on this premise, I would talk to a lawyer - maybe there is some class action for (well... pick almost anything they have done this year) about the bait and switch pricing.

Ok. Back to work.


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## Scott V. (Jul 28, 2014)

Nice Post!! One clarification... it sounded like you were getting "tips" through the UberX app. As far as I understand, that is not possible and we can only receive cash tips via UberX. Maybe I read it wrong...

I will post a strictly numbers comparison of my Sunday fares and how much I would have made under the old fares/commssions and the new. Conclusion is that after deducting 55 cents for miles driven. I will see my net profit cut in HALF. And I was much more careful about the number of miles driven on Sunday than I normally do. Also, I think Uber has changed the algorithm for Surges. There was a significant decrease in Surge pricing yesterday as compared to the previous Sunday.

I decided to get up early this morning just to observe what the Surge pricing was as I heard Monday mornings have incredible demand with very high surges. What I saw did not look normal to me. Wicker Park had a couple of points in time with NO UBERX AVAILABLE during peak rush hour times with NO SURGE PRICING.


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## JoshM (Aug 1, 2014)

UberPissed said:


> Speaking of tips - I may be new, but are they taking commissions based on our tips as well. In other words, if we get a $20 fare, of which $4 was a tip, do they take 20% commission from the pre-tip, or post-tip? If the latter, then Uber better lube up and grab their ankles - this happened to Starbucks a while back (sorry, I am a newbie, and it wont let me include links, just google "Starbucks Workers Tips Suit Scores $14 Million Win Against Coffee Giant."


you certainly are new to this. there is no tip.


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## grams777 (Jun 13, 2014)

Do not say tips are included. Only say (once) that tipping is not required, is not necessary, or no need to tip etc.. It makes a difference. This is what Uber says:
https://support.uber.com/hc/en-us/articles/202290128-Do-I-have-to-tip-my-driver-

Being Uber means there is no need to tip drivers with any of our services.​They do not say tips are included, at least they don't anymore. So we shouldn't say that either. It's not as good for our chances at a tip as is saying no need to tip or whatever. It conveys a different message.


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## JoshM (Aug 1, 2014)

I say tipping is not necessary but I thank them for it and take it.


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## UberPissed (Aug 13, 2014)

Oh... I thought tips were included ... isn't it when you sign up that you can get a tip automatically added to your account? 

As I type this I just flipped over to my personal consumer account and notice that the 20% tip is only for TAXI??? WTF now I'm really pissed. I'm soliciting tips here on out. 

Ok. I just had to take a lap around the office after realizing that I told about 200 people that "tips are included". GD it all to H. 

Uber sucks. My fear is that they will just be the new taxi. What is going to happen - the SMART people will leave. The DESPERATE will stay, service will suffer. 

In the preaching to the choir department, here is what they should do:

1. Add tipping through the app, the same way Starbucks does it. 
2. Stop changing the damn fee structure every other week. KISS (Keep it Simple Stupid).
3. Charge more, eliminate surge, or make the surge logical and not gouging (e.g., a 2 mile trip shouldn't cost $45).

I only Uber because I literally had a fantasy of being a cabbie when I was in law school. I really enjoy the work. I meet nice people. I do it in my free time, where there is $0 opportunity cost. 

By the way - I am currently soliciting Lyft to see if I can cross over. 

In summation - Uber is GREAT (if you are the end consumer).


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## UberPissed (Aug 13, 2014)

Someone on the boards mentioned a card or plackard that they display regarding the tips. I think if someone wanted to make some good money, they could design something that would be mass produced and could sell it to people on the forum. I don't know what the best way to communicate the message in a polite but poignant way. 

I will tell you this - this week I told all my passengers how pissed i was, in a nice way, and received $50 in tips ($20, $20, and $10).


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## UberPissed (Aug 13, 2014)

I swear I used to see on the website that the UberX received tips... call me naive. Oh well. Just another example of the company's bait and switch tactics.


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## JoshM (Aug 1, 2014)

from uber downtown san diego yelp:

* Comment from Lee D. of Uber * 
Business Manager
4/28/2014 Hi Bob,

There is no tip with Uber. The Uber experience means not having to reach for your wallet at the end of a ride. There is no tip built into the Uber fare, nor a way to tip through the app. Tip is neither required nor expected. If you do decide to give your driver a cash tip, that is your choice. They keep 100% of any cash tip that is given at the end of the ride. Hope that clears things up. If you have additional questions, feel free to reach out at t.uber.com/support. Read less


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## JoshM (Aug 1, 2014)

Lee D. from uber sure makes it sound like it's disgraceful to even think of tipping a driver!


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## Doodle (Jul 17, 2014)

Scott V. said:


> Nice Post!! One clarification... it sounded like you were getting "tips" through the UberX app. As far as I understand, that is not possible and we can only receive cash tips via UberX. Maybe I read it wrong...
> 
> I will post a strictly numbers comparison of my Sunday fares and how much I would have made under the old fares/commssions and the new. Conclusion is that after deducting 55 cents for miles driven. I will see my net profit cut in HALF. And I was much more careful about the number of miles driven on Sunday than I normally do. Also, I think Uber has changed the algorithm for Surges. There was a significant decrease in Surge pricing yesterday as compared to the previous Sunday.
> 
> I decided to get up early this morning just to observe what the Surge pricing was as I heard Monday mornings have incredible demand with very high surges. What I saw did not look normal to me. Wicker Park had a couple of points in time with NO UBERX AVAILABLE during peak rush hour times with NO SURGE PRICING.


Scott. I assume you mean Wicker Park in Chicago. I am in Chicago as well. I too have noticed that there have been significantly less Surge this past weekend (Friday & Saturday nights) compared to the last few months. Not entirely sure what they changed though.


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## grams777 (Jun 13, 2014)

JoshM said:


> from uber downtown san diego yelp:
> 
> * Comment from Lee D. of Uber *
> Business Manager
> ...


I'd say it better like this (spin at the beginning removed):
There is no tip built into the Uber fare, nor a way to tip through the app. Tip is neither required nor expected. If you do decide to give your driver a cash tip, that is your choice. They keep 100% of any cash tip that is given at the end of the ride.


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## yoo (Jun 24, 2014)

Doodle said:


> Scott. I assume you mean Wicker Park in Chicago. I am in Chicago as well. I too have noticed that there have been significantly less Surge this past weekend (Friday & Saturday nights) compared to the last few months. Not entirely sure what they changed though.


I saw some surge pricing but went away quickly on Saturday night. None of my ride include surge pricing even though i was in surge area. I get pinged outside of the surge area WTF!!! I need to drive more then once a week or quit this. Rider fee and 20% commission is killing me


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## UberPissed (Aug 13, 2014)

Indeed. Hard to make a buck doing this. This past week driving - mostly Sunday and a few other trips peppered in:

Fares 243.21
Commission 47.86
Oppressive device fee 10
Net 185.35

Probably did 15 hours and spent $40 in gas. So.... 9.69 pre-tax.


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## Chicago-uber (Jun 18, 2014)

I'm still debating if I should quit uberx. The problem is that I'm considering getting my chauffeur license and move up to uber black.


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## yoo (Jun 24, 2014)

UberPissed said:


> Indeed. Hard to make a buck doing this. This past week driving - mostly Sunday and a few other trips peppered in:
> 
> Fares 243.21
> Commission 47.86
> ...


I average about $22-25 per hour before all the fees. But whos counting. After fees and expense its minimum wage.


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## McGUBER (Aug 19, 2014)

Hey guys. I'm new to Uber and new to the site. I just filled out the application in fact. 

Curious about this device fee, commish, etc. 

Does this apply to all Chicagoland or just if you take rides in the City. 

Thanks for any insights.


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## uberdriver (Aug 4, 2014)

UberPissed said:


> Indeed. Hard to make a buck doing this. This past week driving - mostly Sunday and a few other trips peppered in:
> 
> Fares 243.21
> Commission 47.86
> ...


How many miles did you drive in total, both on fare rides and also before/in between/after fare rides ? Assuming an average speed of 20 mph, that could be 300 miles. Using the conservative IRS estimate of the cost of operating a car of $0.56 per mile, your pre-tax net would be $17.35. That would imply $ 1.16 per hour. Flipping burgers at McDonalds is starting to look like a very high paying job.....


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## chi1cabby (May 28, 2014)

McGUBER said:


> Hey guys. I'm new to Uber and new to the site. I just filled out the application in fact.
> 
> Curious about this device fee, commish, etc.
> 
> ...


It's all the same...Chicago City, Burbs...same rates, same commission, fees etc.


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## Raider (Jul 25, 2014)

Speaking of tips, Uber, if the tip money is already included in the fare, then Uber is taking %20 of our tip money...which is a BIG no no...remember the Starbucks case?


And why can't they take the 10 dollar data fee out BEFORE taking %20 commission...so now we are paying $12 dollar for the fee are we not?


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## UberPissed (Aug 13, 2014)

McGUBER said:


> Hey guys. I'm new to Uber and new to the site. I just filled out the application in fact.
> 
> Curious about this device fee, commish, etc.
> 
> ...


In my experience, the suburbs are a waste of time and money. Because they continue to slash fares, its hard to make a buck doing it. I would stay between Montrose [N] Roosevelt the lake [E] and Western [W] and try to avoid going out of that square.
I'll tell you a story of going to the burbs. I started downtown and took someone to Evanston. A few miles north of town. Then I picked up someone about 8 minutes away and took them to Des Plaines, about 30 minutes west. My next fare is about 5-10 minutes later and is to buffalo grove, and takes 5-10 minutes to get to. I cant remember where I dropped them off, but I ended up taking some one not too far from that to Inverness. People from chicago don't even know where that is. Google it. Look how far i ended up. Keep in mind this is all while the city was surging like crazy. The fares were ok, but I ended up having to clock off for 60 minutes to get back into the city. I don't remember how the fares broke down, but the mileage was much higher, and I was on a toll road for most of it.


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## ElectroFuzz (Jun 10, 2014)

The lower per mile pay really killed the suburbs.
Thought with ever decreasing pickup fees and per minute rate
we are all approaching poverty rates.


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## UberPissed (Aug 13, 2014)

I always thought they could even it out by having a premium to go out into the suburbs. A cab will charge fare and 1/2 to go into the suburbs. I remember taking a cab from MDW to my home, it was $60 and i lived 6 miles way. A car company charged $26. Uber would probably be $13. I would take Uber up to the amount of its competitor.

I don't know. I read a good post on here that essentially said that Uber gets to exploit drivers who don't appreciate the true cost of driving, and that they are letting them acquire the capital assets, and that there will always be a population of drivers that do not know they are being fleeced. 

Others on the forum find us just to be ungrateful and nitpicky and complainers. I see that - I get it. I am a leader on that front. I think our biggest frustration is that the company could be soooo much better by valuing their driers, and let that trickle up. Don't they realize that when the driver is making a killing, they are making 20% of that killing?


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## mp775 (Jun 26, 2014)

Raider said:


> Speaking of tips, Uber, if the tip money is already included in the fare, then Uber is taking %20 of our tip money...which is a BIG no no...remember the Starbucks case?


That's why Uber replaced "the tip is included" with "no need to tip"; there's already a lawsuit - http://www.uberlawsuit.com



> And why can't they take the 10 dollar data fee out BEFORE taking %20 commission...so now we are paying $12 dollar for the fee are we not?


You mean exempt your first $10 worth of rides from commission? That would be interesting; it would be extra incentive for part timers to do at least a couple rides a week (as if the data fee alone isn't enough). But it would mean paying an $8 fee if that were the case, not $12 currently.


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## ElectroFuzz (Jun 10, 2014)

UberPissed said:


> Others on the forum find us just to be ungrateful and nitpicky and complainers. I see that - I get it. I am a leader on that front. I think our biggest frustration is that the company could be soooo much better by valuing their driers, and let that trickle up. Don't they realize that when the driver is making a killing, they are making 20% of that killing?


Rates in January were $1.95/mile
Then $1.47/mile
Now $1.20/mile
And Chicago is now at $0.90/mile

All this in less then 1 year..... but I shouldn't worry because I can work
harder... right?!


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## uberdriver (Aug 4, 2014)

ElectroFuzz said:


> Rates in January were $1.95/mile
> Then $1.47/mile
> Now $1.20/mile
> And Chicago is now at $0.90/mile
> ...


Yes, the harder you work, i.e. the more hours and miles you drive, the more money you will LOSE given the hidden cost you will have of car depreciation and future car repairs due to the increased wear and tear.....


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