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Uber offers hundreds in bonuses for some drivers as the busy holiday season approaches

Driver sits behind the windshield of a blue vehicle displaying an Uber logo and windshield sign.
Uber is offering some drivers hundreds of dollars in incentive pay, depending on how many rides they complete in a given period.

Michael Macor/The San Francisco Chronicle via Getty Images

  • Uber is offering bonuses to some drivers for completing more rides or referring new drivers.
  • The bonuses can add up to hundreds or thousands of dollars.
  • Uber has used such extra pay in the past to attract drivers to the platform.

Uber is offering ride-hailing drivers something that many haven't seen in years: Big bonuses.

The ride-hailing service is coaxing some drivers to take more rides, offering up to several hundred dollars in "incentive" pay if they complete a set number of rides within a set time period, according to several screenshots of the offers seen by Business Insider.

In one example, a driver was offered $525 if the driver completed 45 trips within a few days. Similar offers involved smaller payouts and fewer trips, but paid out proportional amounts of $10 to $12 per trip.

That's a huge pay bump for many drivers, who make as little as a few dollars per trip, said Sergio Avedian, an Uber driver and senior contributor to the gig-driver-advocacy blog and YouTube channel The Rideshare Guy.

The bonuses might also be Uber's attempt to get more drivers on the road to meet rider demand during busy periods like Halloween and the holiday travel season, Avedian said.

"This may tell the story that they need supply," he said. "They're saying that we need to get everybody out there."

Some drivers have also gotten messages from Uber encouraging them to refer friends to sign up as drivers or get those who haven't driven in a couple of years back on the app, according to screenshots seen by Business Insider. Payment for those referrals can reach up to $1,225.

The payments are a potential boon to Uber drivers, whose pay can vary significantly between cities.

Uber drivers have to cover their own costs, such as car maintenance, since they are independent contractors, not full-time employees. Rising gas prices have eaten into drivers' pay after the US and Israel started a war with Iran earlier this year.

An Uber spokesperson did not provide details on why the company is offering the payments.

Uber has used targeted incentive payments before.

In 2021, demand for rides began to outpace the number of available drivers after many had stopped driving during the pandemic.

In response, the company decided "to invest fast and to invest aggressively in attracting drivers back to Uber" and increased the number of active drivers on the app by 65% between January and November that year, CEO Dara Khosrowshahi said on an earnings call at the time. Uber later pulled back on the extra pay.

"When we were coming out of the pandemic, they were short tons of drivers," said Avedian, who was driving for Uber at the time. "It was crazy bonuses out there."

More recently, riders have been paying more per mile and waiting longer for their rides to show up, according to a study published last month.

Do you have a story idea about Uber? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Read the original article on Business Insider

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I'm a firefighter who turned to Uber as a temporary gig. It's been a tough way to make money

Person in a black shirt sits at an outdoor cafe table holding a paper cup near an illy mug.
Matthew Guerrero drives for Uber in Southern California.

Matthew Guerrero

  • Matthew Guerrero says gas costs eat up much of his pay as an Uber driver in Southern California.
  • He prioritizes giving rides to weekend barhoppers who tend to tip well, he said.
  • Uber says that one driver's experience isn't representative of the broader platform.

This as-told-to essay is based on a conversation with Matthew Guerrero, a 41-year-old Uber driver in Southern California. It has been edited for length and clarity.

I worked as a firefighter for about four years before I got injured on the job.

I've been seeking a workers' comp settlement that should be settled soon. In the meantime, my lawyer said that I could start working again. I needed a job really quickly, especially with three kids, so I started driving with Uber.

I've been driving with Uber for about five weeks. So far, it hasn't been very successful. For example, one week, I made $600 working 30 hours. To make that, I spent about $300 in gas driving my SUV.

Then, I have to put between 20% and 30% of what's left aside for taxes. That comes out to about $210 for 30 hours of work. That doesn't even include wear and tear on my car. I don't understand how anybody can do this long-term. It's not sustainable.

The pay is better if you drive in Los Angeles or San Diego. But I'm in Riverside County, and the pay seems to be lower here.

To get better-paying rides, you have to be strategic. Sometimes, I try to get a ride with a passenger who's headed to an airport in one of the big cities. Then, I stay there all day and take rides. That's not always feasible, though.

When I started with Uber, I realized that there were a lot of rides that involved taking people to morning doctor's appointments. Most of those people didn't tip well, though, and tips are key to making money.

Instead, I like to work Friday and Saturday nights around bars in Temecula. I usually log on around 4 pm and head home around 3 am. The pay is good, and the tips are a lot better than other rides in my area. Sometimes you have to deal with drunk people throwing up, but it's worth it.

I've given some rides to veteran Uber drivers — people who were working on the app back in 2015 and 2016. They said that they used to make better money than I do, and that they quit after they saw pay fall.

That was eye-opening for me. I don't understand how a company like Uber can pay as little as they do.

An Uber spokesperson said drivers in Riverside County, California make "at least $20.28 per engaged hour, plus $0.37 per engaged mile for vehicle expenses, with tips on top of that."

"While this guarantee doesn't cover time spent waiting for trips, it's important context when discussing driver compensation," the spokesperson said. Driver earnings can vary based on when drivers decide to work, where they drive, and rider demand.

"One driver's experience isn't representative of the broader platform," the spokesperson said.

Do you have a story idea about Uber? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Read the original article on Business Insider
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