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By Ryan Chan
The new scheme sees fare multipliers triggered when drivers enter hotspots, similar to the surge pricing model for riders. Drivers not driving within these hotspots will not benefit from any incentives. This is different from the previous scheme’s guaranteed hourly earnings.
The changes to the scheme took effect on 3 October 2016, two days after they were first communicated to drivers.
NPHVA Executive Adviser S Thiagarajan said in a statement that the association has received feedback from drivers that the adjustment period to the new scheme was not sufficient enough to allow them to make changes to their driving strategies in order to fully benefit from it.
Mr Thiaga said: “Specifically, there are certain groups of drivers who are affected by this change, namely new drivers who have just committed to driving for Uber, basing their decision on the previous incentive scheme and earning models.
“Such drivers have either entered into rental contracts or converted their own vehicle for private hire usage. There are also some drivers who are waiting to see how the scheme will impact them.”
The Fine Print
NPHVA plans to work with Uber to address these concerns. The association has also urged all drivers in the private hire industry to be more aware of what they sign up for.
“As incentive schemes, earning models and advancements in technology remain ever-changing, drivers in this industry should read the fine print of their contracts carefully and be fully aware of the risks and pay-offs involved,” said Mr Thiaga.
Source: NTUC This Week
