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Uber hesitant over fare increases amid driver strike

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Uber and Taxify operators stop some of their fellow drivers near Zoo Lake in Johannesburg as they embark on a strike. Picture: Ernest Mabuza
Uber and Taxify operators stop some of their fellow drivers near Zoo Lake in Johannesburg as they embark on a strike. Picture: Ernest Mabuza

The recent petrol price increase has led to an ongoing strike by Uber and Taxify drivers, who are pleading with the companies to increase fare prices.

While Taxify has taken a positive stride, Uber has not indicated whether it will follow suit, saying that an increase in its fares will result in lower earnings.

“We constantly monitor fares and examine consumer price sensitivities to ensure fares are correctly priced so that riders continue to take trips and drivers have access to more fare-paying passengers.

“If fares were to increase, then riders may take fewer trips, which will ultimately lead to lower earnings,” Uber spokesperson Samantha Allenberg said.

Uber and Taxify operators embarked on a strike on Tuesday in Gauteng with some blocking roads and pick-ups of passengers in parts of Johannesburg.

There were also reports of disruptions on the roads near Zoo Lake in Johannesburg as they gathered for the strike.

Uber drivers gathered outside the company’s head office in Kramerville, Sandton, where they handed over a memorandum to management while the Taxify drivers submitted their memorandum to management in Bryanston.

Some drivers gathered in Pretoria and marched to the Uber offices in Garsfontein.

https://twitter.com/djtbosmaster/status/1014085176064987137

The drivers for the app-based taxi service had given bosses until Monday to reply to their demands before resorting to the strike.

The drivers said that they were unhappy with their monthly income and the 25% service fee charged by Uber per ride.

Speaking to Pretoria News, Tshwane Uber and Taxify Operators chairperson Chris Rabohali claimed that on paper Uber deducted 25% per trip, but their calculations convinced them this was in fact 27.7%.

He said he didn’t understand why Uber called them partners when it didn’t consult them about changes or the decision to deduct a fee for security.

“Living costs have dramatically changed. It’s about time Uber and Taxify took note.

“To make matters worse, since violent confrontations erupted, Uber added a security component, but made us pay for it. We’re struggling to support our families,” he said.

Allenberg said that the company was aware of the strike and denounced attacks on drivers and passengers.

“We are aware of a small group of driver-partners who went offline yesterday in Johannesburg. We respect driver-partners as valuable partners with a voice and a choice and we want driver-partners to feel they can talk to us about anything at any time.

“However, violence or intimidation against riders or other drivers is limiting their choice and is both unacceptable and against our community guidelines.”

Uber drivers also said that fares had remained the same over the past four years and that the recent fuel increases had severely affected their income.

The petrol price for a litre of unleaded 95 petrol initially went up in May from R14.48 to R14.97.

The price was hiked again in June by 5.48% to R15.79 and increased again by 1.46% to a record high of R16 a litre on midnight on Tuesday.

Some customers took to Twitter to complain about surged prices and their inability to travel due to the strike.

https://twitter.com/Silindokuhle/status/1014221891081523200

https://twitter.com/Dilly_do_Dah/status/1014147699451596801

https://twitter.com/tcmallinson/status/1014056368494514176

Allenberg couldn’t confirm whether management had received the memorandum and if they would be engaging with the drivers amid the strike.

“Drivers have a number of channels available to engage with Uber including daily office hours, 24/7 support and regular partner roundtables.

“We’re committed to supporting the men and women who drive with Uber across South Africa which is why since the start of 2018, we have invited more than 3500 different driver-partners across the country to sit down with us and share their feedback about their Uber experience.

“While we complete a deeper study of driver economics, we launched a temporary winter incentive prior to the recent fuel price increase last month to help reduce the impact of fuel increases.

“This is designed for driver-partners who do a certain amount of trips and is calculated based on information provided by drivers and fuel efficiency statistics of their vehicles.

“We understand that fuel is one of the biggest weekly expenses for drivers which is why drivers can also access rewards that help them reduce costs and keep more of their earnings.

“This exclusive programme provides deals such as fuel rebates, cell phone deals, maintenance and health care,” Allenberg said.

Meanwhile, Taxify said it had met with drivers to hear their concerns. Country manager Gareth Taylor said that trip fares had been increased to accommodate the increased petrol price.

The strike was indefinite and Uber management had been given 48 hours to respond to the drivers’ demands .

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