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Uber says it will be more transparent with drivers about the full cost of the ride

The company was telling drivers it took a much smaller commission per ride than it actually was.

Uber says it will be more transparent with drivers about the full cost of the ride
[Photo: Klaus Vedfelt/Getty; Sahand Hoseini/Unsplash]
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When you order an Uber, you see the price you’re going to pay for the ride on your phone. But the driver, it turns out, sees something entirely different. Up until now, drivers have seen a different fare price, leaving them in the dark about what percentage Uber is taking for itself. But that practice will soon be changing in California.

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Last week, San Francisco news outlet Mission Local published an investigation into Uber’s pricing and found a large gap between the fare quoted to the passenger and the fare quoted to the driver. In one example, a driver saw his rate of $11.47, an Uber commission of 44 cents and a city fee of 59 cents, totaling, $12.50 for the rider. But the passenger actually paid $15.79, a $3.73 difference, well above the 44 cent service commission Uber told the driver it was taking.

Now, in response to the article, Uber says it will change the practice in California starting the week of July 26. It told Mission Local: “We have changed our policy, and drivers will now see the driver benefits and marketplace fees, which were previously only shown to riders.” Uber did not clarify whether it would expand this policy to other states. Update: Uber explained that the price discrepancy was a result of some of the fees created on by state law created by Prop 22, and thus was occurring only in California.

Drivers who Mission Local spoke to say the transparency will help them understand the true economics of driving with Uber and demand more from the company.

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About the author

Morgan is a senior editor at Fast Company. He edits the Impact section, formerly FastCoExist.com. Have an idea for a story? You can reach him at mclendaniel [at] fastcompany.com

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