Drivers of app-based taxi service Uber say the decision by the company to lower fares by 30 percent – compared to June 2015 – in metro-area Guadalajara is making their work unprofitable.
Dozens of drivers parked their vehicles outside Uber’s offices on Avenida Plan de San Luis Monday to protest the move announced shortly after the beginning of the year.
Many of the drivers said they had taken out loans to purchase new cars to work as Uber drivers and said their earnings under the new fare system will scarcely cover their monthly payments.
The new fare system applies only to the lower-end Uber X platform.
Drivers were upset in November last year when the San Francisco-based firm increased its commission rate for Uber X rides from 20 to 25 percent.
Under the new Uber X fare system, the minimum fare will be 25 pesos, instead of 35 pesos. A ride from the Minerva Glorieta to the Guadalajara International Airport will cost around 115 pesos, down from 145 pesos.
The company argues that the drop in fares is justified at this time of year as the number of people using cabs falls significantly after the holidays.
Lowering fares stimulates demand, Uber said in a statement, resulting in shorter wait times for drivers between rides. “Over the years we have learned that things go better when we try new things,” reads a company blog. “With each experiment – big or small – we learn more about the choices passengers make, and how they impact the earnings of drivers.”
Uber’s app allows consumers with smartphones to submit a trip request which is then routed to drivers who use their own cars. No cash changes hands and fares are charged automatically on passengers’ debit or credit cards.
The service currently accounts for almost one-quarter of all taxi rides taken in the Guadalajara metropolitan area.