UberEATS Under Fire After Imposing New Rate Cut for Delivery Drivers

uber_eats_toronto_food_delivery

The city of Toronto is a food delivery service hub, with plenty of options for customers who don’t feel like cooking or leaving their apartment to eat at a restaurant.

Earlier today, a Redditor posted that UberEATS was slashing payments for delivery drivers (sometimes called partners or couriers) by 30 to 50 percent. The thread gained a substantial amount of reactions from Redditors and users on other social media sites.

According to the post on Reddit, here is how the payments are changing:

“Old UberEATS payout terms: Time = $0 per km Distance = $1.80 per KM -35% Uber deduction Flat rate = $6.50 – 35% Uber deduction

New UberEATS payout terms: Time = $0 per km Distance = $1.05 per KM – 35% Uber deduction Pickup = $2.90 – 35% Uber deduction Drop off = $2.50 – 35% Uber deduction”

The Redditor continued on to say:

“Effectively if you as a partner got two delivery orders at one restaurant, you would be paid a flat rate fee each of them. Now you are only paid ONE pickup fee. That is a major part of the pay going down.”

Photos have started appearing on the web showing UberEATS couriers standing outside of Uber’s Toronto headquarters holding protest signs and calling for a boycott. Global News reports that some drivers are staging small protests outside of the Adelaide Street West building.


Uber Canada spokeswoman Susie Heath confirmed that the rates for the service were changing, but declined to comment any further.

“In order to ensure consistent earnings, we have introduced new a delivery fee boost based on when and where partners deliver. Maximizing delivery partner earnings is a priority and we will continue to work to ensure a competitive income for all our partners.”

What do you think of Uber’s latest change in rates for UberEATS couriers? Let us know in the comments below.

A software engineer with a passion for creation and innovation using technology. To learn more about me, check out my personal website, which contains links to my projects. Email: nick@iphoneincanada.ca

  • iverge

    This is not a good look for Uber. Changing the rates overnight is not what you do to your “partners”. The right thing to do is consult with them.

  • Joe

    Glad to see someone exposing the dark side of this “new” app based economy. It’s just like with cabs… if the end result is that wages are going down, I don’t see how anybody can be for that.

    I’d be curious to know how Door Dash and these other companies pay their drivers too. I’d imagine probably similar to uber.

  • Mark B

    This has been what Uber does, besides bullying their way into Markets. Ride-hailing and taxi alternatives, in themselves aren’t bad… but Uber is. They unilaterally increase their cut (and reduce drivers’ share… if the drivers want to earn the same, they have to “drive more”). It’s all part of Uber’s plan though, they only want drivers as long as they need them. As soon as autonomous cars are viable, there will be no need for drivers. The only reason for drivers now it to get users “so used to the service” that when they eliminate drivers, we’ll continue using Uber.

  • Mark B

    Uber did the same thing to their drivers in early 2016 in many cities, including Ottawa (that already had the lowest prices in Canada). Uber did this unilaterally and without warning then. It’s what they do. Uber is more about making money for Uber than for the drivers.

  • Dehop

    Indeed, when visiting San Francisco there was an Uber car with auto-driving gear cruising the streets. Still had a driver, but the writing is on the wall.