Portland city finally caps Uber's commission to 10%
Uber increased customer fees by $3 per delivery to survive this huge change in business model.
“A recent City of Portland Ordinance temporarily limits what Uber Eats charges restaurants to fulfill orders,” an explanation of the charge reads. “To help keep delivery drivers on the road, a new charge is applied to orders from restaurants in the city of Portland.”
The city did not recommend the size of the fees added but it still labelled as some ordinance towards the city of portland. The motive was to simply cap the commission taken by Uber to help Drivers and restaurants earn more during this pandemic. Uber decided that they would need to increase their fees by $3 to afford dropping their commissions to 10%.
This is a glaring indication of where the future of ride-sharing is headed.
Millions of Drivers in the nation had relied on driving as a source of income and have been stripped of it almost entirely. To get back on their feet and for Uber to reach profitability while facing a legal requirement to drop commissions, the entire burden will fall onto the riders. Riders can expect to see the fee increase from $3 and see hikes in ride prices, food delivery, bike sharing aswell because more fees is Uber's best chance of survival today.
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