Uber has once again offered a lowered service fee for its driver-partners in Sydney. Just like before, drivers still have to complete 50 trips with a standard 25% fee before they are eligible to unlock the 5% on each trip for the rest of that week (before 4am Monday next week).
As an example, a driver in Sydney successfully completed 50 trips on Thursday afternoon. After that for the 51st trip and onwards Uber will be charged the driver with a promotional 5% service fee for each trip till Monday morning the following week.
The promotion starts on Monday, 9 March until Monday 16 March 2020. We have not received additional information whether the promotion will continue to take effect after March 16 or will stop until that date.
According to a similar promotion that was launched late in 2019 which lasted more than a month, then there is still a possibility that this promotion period will be extended.
Uber offers this promotion possibly related to the launch of the rideshare service from one of its competitors in the country, Didi. As we know, Uber competitors today are not conventional taxis but other rideshare companies.
As we have already reported, Didi officially launched on March 16 2020, in Sydney, but they have started recruiting drivers in early 2020. Actually the Chinese company has officially launched its first service in NSW through Newcastle in 2019, also in March.
Didi lured new drivers in Sydney with a 5% service fee for 4 weeks after the launch date, before they will be included in the Didi Advance Program. The company even offer 0% service fee if you can refer your friend to drive with them. In addition, they also offer rewards up to $5,100 for drivers who interested in referring new Didi riders.
Since Didi’s arrival in Australia that promised more income by cutting the driver commission fees, Uber has often issued new promotions for its drivers to keep the driver on the road with their platform. At the end of 2019, they also issued a 5% promotion fee which we categorized as seasonal promotions.
The most recent service fee reduction promotion is also given to select Uber drivers in Perth, eligible drivers will be entitled to an 11% fee during peak hours where most trips take place.