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Uber cuts controversial service fees from 25% to 20%

Uber

Uber has finally slashed its controversial 25% service charge on drivers’ earnings to 20%, ending years of back-and-forth between the taxi giant and its drivers in Ghana.

In a statement, the company said, “You can be your own boss while driving with Uber! We are also happy to announce that Uber’s service charge will now be 20% and NOT 25%!!!! This means you can now earn even more by signing up to drive with us.

This comes after many years of unrest among Uber drivers in Ghana and around the world, which led several Ghanaian Uber drivers to go on strike in 2018, but Uber has still ignored their cry.

In a number of engagements with reporters, Uber has maintained that its fees are uniform across the world and that fee revenues are used to improve the app for the convenience and safety of drivers and passengers.

Uber has taken a very strong stance, insisting that drivers don’t have to keep using the Uber app, and can check out and choose alternative apps, or even turn their vehicles into offline taxis. regular.

Meanwhile, in other jurisdictions, some drivers have obtained court rulings against Uber, and the rulings stated that the drivers were indeed employees of Uber and that Uber had obligations to the drivers as employer.

In one such case in Kenya, Uber Kenya hid behind the parent company, Uber BV, registered in Amsterdam, and claimed that the drivers had signed contracts with the parent company and not with Uber Kenya, so that Uber Kenya cannot be held responsible for anything relating to drivers in Kenya.

But the court noted that the parent company and Uber Kenya had the same addresses and used the same attorney in court, so they cannot claim to be separate entities.

In Ghana, drivers have always complained about the high fees and also that Uber offers heavy discounts to passengers without informing the drivers and yet they still take their 25% off the discounted fares.

Meanwhile, on a normal day, when there are no discounts, Uber’s passenger fares began to rise from what the competition was charging.

This has led to some media interest in the Uber-driver relationship. But Uber staff in Ghana took the stance of not responding to any media inquiries and referring all questions to a PR person in Nigeria and later South Africa for redress.

Bolt and other taxis took advantage of Uber’s high driver fees and higher fares and they offered lower driver fees and much lower fares.

As a result, Bolt in particular now dominates the local market even though Uber was the first player in the space, and Yango is getting stronger as they offer better deals than Uber.

The result is that many drivers have completely removed the Uber app from their phones, and many who still have the app turn it off for much of their day, while accepting requests on Bolt and Yango.

Reducing driver fees to 20% on Uber could be a game-changer as it equals what current market leader Bolt charges.

There are over 15,000 drivers connected to taxi services in Ghana, and Uber boasts of around 10,000 more using its app.

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