The popular cab service, Uber may not be as readily available on your next trip to work – the recent increase in fuel prices is making it harder for drivers to keep their vehicles running. Uber is tackling the fuel increase by providing a number of incentives for Uber drivers to save on costs.
Drivers, however, are disgruntled by the 25% service fee charge by Uber. Their profits are decreasing because of the service charge and the steep increase in fuel prices. Another fuel price increase is expected in July, making it the fourth increase this year.
Cape Town Uber drivers have been dealing with so many issues – from the impounding of vehicles due to the lack of permits, to the escalating petrol prices. In March 2018, over 140 Uber vehicles were impounded in Cape Town. Their only solution is to limit their services.
Uber as a corporate is attempting to provide aid to drivers to prevent a lack of availability in their services.
Uber General Manager for Sub-Saharan Africa, Alon Lits, says the implementation of the rewards programme on Uber functions was added to help reduce costs and provide aid to partner-drivers with Uber.
“This exclusive programme provides deals such as fuel rebates, cell phone deals, maintenance and health care.”
Further incentives have been provided to drivers during winter to manage the fuel hike, along with the current promotions to keep drivers on the road and provide business for both Uber and their partner-drivers.
Lits indicated that this is a first for the industry and that Uber strives to keep the cost for drivers low. “Transport services supplied by our driver-partners are exempt from VAT under current legislation, hence prices are not impacted by the recent VAT increase,” he said.
Lits indicated that Uber is dedicated to find a solution and avoid strikes.
“Uber succeeds when our partners succeed, and our teams are working hard every day to ensure drivers using our app continue to thrive,” said Lits.