Let me break it down real quick for you…
- Uber takes $1 from every fare, which it calls its Safe Ride Fee (SRF). More on that later…
- Uber then takes 20% of the remaining total as its commission.
- The driver pockets what is left.
So, here is how the $4 minimum fare plays out:
Step 1: $4 – $1 (SRF) = $3
Step 2: $3 x .2 = $0.60
Step 3: $3 – $0.60 = $2.40
Et voilà! Your Uber driver rakes in a total of $2.40 for every $4 ride he gives. Make it rain!
If you use Uber, I am sure you know what a minimum fare looks like. But just for reference, let me provide one example. This ride was given in Silverlake, where $4 rides are most common, because hipsters rarely leave their natural habitat:
As you can see, this trip took six minutes total. But keep…
View original post 197 more words