Uber May Soon Force You To Pay More If You’re In A Rush

Uber is currently testing a new tier of service called Priority that will reduce wait times for cabs in exchange for a higher fare, a move that is less about the convenience factor and has more to do with offering extra income for its driver-partners whose numbers are shrinking. Uber, alongside rival brands like Lyft, has recently been at the receiving end of criticism from gig workers demanding an employee status, union approval, and better pay.

Just over a year ago, a California court ruling granted employee status to Uber’s driver-partners, prompting the company to look for alternatives such as licensing the brand to vehicle operating fleets and avoid the responsibilities that come with being an employer. The pandemic only fueled the woes for both parties, as Uber’s ride-hailing business took a serious hit due to health restrictions while its driver-partners lost their source of income.

In Brazil, Uber didn’t have to face demands for employment status and unionization, but a loss of business due to pandemic, spiraling fuel prices, and stagnant incentives have created a steep shortage of drivers in the country. To ease the situation for everyone, the company has launched an Uber Priority service in three cities across Brazil — Belem, Campinas, and Curitiba. Customers availing Uber Prioridade — as the service is called in Brazil — will have to pay a higher fare charge in exchange for reduced wait times for a cab. However, Uber mentions in its press release that the Priority service is aimed at offering another earning opportunity for its driver-partners.

Uber Priority Might Solve Two Problems In One Go

As for the costs, Uber says Priority cabs will cost slightly higher than UberX, which can accommodate up to four people as part of the service. According to a Bloomberg report, Uber Priority rides will cost roughly 20 percent higher than regular rides. To avail the service, users simply have to select the new Priority option while searching for a ride in the Uber app. There are no fixed hours for availing a Priority cab with lower wait times, and availability would depend on the current traffic levels. Uber says it is expecting more ride requests ahead of the holiday season and also thanks to the easing of COVID-19 restrictions. To recall, the company recently started offering free rides in the US for folks visiting a COVID-19 vaccination center.

Uber’s latest experiment is currently limited to Brazil, and there is no official confirmation regarding Priority’s expansion to more markets like North America and Europe. The company has lately expanded its footprint in the US with its Uber Eats and Connects services, but the situation with its driver-partners hasn’t improved much. As the pandemic led to layoffs due to plummeting rides and the company started focusing on new delivery-centric services like Connect, Uber continued to have a tense bond with its driver-partners. The Priority service appears to be an interim solution that can be implemented to a variable degree of success in the US, and elsewhere too. If the company is unwilling to provide employee status and related benefits to gig workers, it can at least offer them an opportunity to make more money with services like Priority, which are also convenient for passengers willing to pay for it.

Source: Uber Brazil, Bloomberg

About The Author