Uber drivers complain about change in incentive scheme

SINGAPORE — Barely a week after Uber revamped its incentive scheme to rely less on trip-based components, drivers using the platform are already turning to the National Private Hire Vehicles Association (NPHVA) to air their grievances over the “insufficient” notice period given to them before the change kicked in.

On Saturday (Oct 2), the private-hire car service provider announced to drivers through email and text message, as well as on its website, that it was introducing a new incentive scheme, allowing drivers to multiply their fares with a “guaranteed boost” for all trips within specific hotspots during certain times. 
This change, which took effect two days after the announcement, veers away from the previous incentive plan that had focused mainly on drivers hitting a minimum number of trips per hour, and the percentage of trips that drivers accept (acceptance rate).

On Thursday, the NPHVA said that it had received feedback from drivers that the two-day notice period was too short for them to tweak their driving strategies to benefit from the new scheme.

The association’s executive advisor S Thiagarajan said: “Specifically, there are certain groups of drivers who are affected by this change, namely new drivers who have just committed to driving for Uber, basing their decision on the previous incentive scheme and earning models. Such drivers have either entered into rental contracts or converted their own vehicle for private-hire usage.”

Mr Thiagarajan added that the association would arrange a meeting with Uber to share this feedback. He hopes that Uber will be able to give “due consideration” to the drivers, and that for future changes, drivers will have “sufficient lead time” to “adapt accordingly”.

NPHVA also urged drivers to study the fine print on their contracts and be fully aware of the risks and pay-offs involved, given that incentive schemes, earning models and advancements in technology change frequently.

Responding to queries from TODAY, Uber said that it announced the new structure at a monthly “roundtable” session with drivers about three weeks before it launched the incentive scheme, and there was another session with drivers, who tried out the system before it went live.

It added that the new incentive scheme was introduced because of feedback from drivers, who said that it was difficult to meet a minimum number of trips per hour due to traffic conditions or they had to go longer distances for a trip. They also had commuters cancelling rides that were booked even before they could get to the pick-up points.

These challenges meant that they made fewer rides per hour, thus affecting the incentives they earned.

Its spokesperson said that drivers also asked for more transparency in incentive payouts, because they “did not always know whether they achieved their incentive until the end of the week”.

During the trial session for the new scheme, Uber said that feedback in general was positive, as the drivers could see their real-time incentive earnings and it was easier for them to get the incentives without having to meet any minimum requirements.

Uber driver Judy Yeo, 63, who has been on the roads since May, is still of the view that the change in the scheme were not to the drivers’ advantage, because they would have to head to hot spots at specific timings to reap the most benefits.

“For me, I always go for the number of trips (to earn incentives). Sticking to specific timings is a bit difficult for me.”