Uber leverages modern technologies such as mobile phones, internet connectivity, GPS, web platforms, and payment software to deliver transport referral services. The drivers, partners, and riders are connected by the Uber App, and the payment options include both cash and cashless transactions. Uber is a technology-based facilitator and the company relies on service charges to make profits.
The company charges a commission on each fare payment and records the cash or digital transactions by tracking or recording all the rides. The company collects bank account details from riders, drivers, and partners, and relies on software and web technologies for all the automated background activities related to ride request, driver communications, route tracking, fare calculations, and payment processing.
How Much Uber Pays to Drivers
Uber technologies provide its taxi referral services in different countries, and the fare estimation process varies from one city to another. The following options are provided by Uber to drivers in a reliable and transparent manner –
- Weekly payment using direct deposits to the driver’s bank account.
- Online weekly payments without any delay in e-transaction processing.
- Instant Pay option to cash out the fare after completing the ride.
- Uber charges the service fee for instant cash out methods in addition to the commission they deduct from every ride’s fare.
The exact amount that Uber pays the drivers depends on the city, chosen route, travel distance, time of the day, demand in that area, and the selected payment option. The fare estimate can be electronically calculated using the details of pickup location and destination. The Uber App’s GPS navigation and offline maps as well as Uber’s official website can be used to estimate the current fares.
- The drivers can keep the direct cash payments made by customers.
- Weekly deposits to the driver’s bank account include all due cashless payments minus service charges of Uber.
- The company deducts 20% as commission on every ride and this includes both cashless and cash payments.
- Uber pays 80% of weekly fares to the driver’s account using the direct deposit information.
- Drivers who opt for GoBank Uber Debit Card do not have to pay service fees for Instant Pay cash outs.
Note: Week is calculated from Monday morning to next Monday morning, and payment is done on following Thursday.
Uber Payment Methods
Uber services provides various payment options and all the customers, including drivers, can choose from one of the following methods –
- Net Banking
- Credit Card
- Debit Card
- Digital Wallets such as PayTM, PayPal, etc.,
- GoBank Uber Debit Card
Uber Driver Pay Structure
Uber fare structure depends on a large number of factors including the fare calculation method. The customers are provided the details of upfront fares that are calculated electronically using the following –
- Base rates
- Rate for estimated time of the ride
- Distance covered by the driver on the chosen route
- Supply and demand situation in the pickup area of the customer.
- Booking fee, toll tax, service fee, applicable surcharges or surge/dynamic pricing, etc., are also added to the upfront fare.
Some cities do not offer upfront prices, and the rider has to pay a post-trip fare to the driver at the destination. The post-trip fares could be a minimum agreed price, or it includes some or all the rates used in calculating the above-mentioned upfront fares.