UberEATS Toronto reportedly changing pricing model, resulting in reduced pay for drivers

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A Redditor claiming to be a former UberEATS driver has posted to the /r/toronto subreddit stating that Uber informed all UberEATS Toronto drivers via email last night of a change in its payment model — resulting in significant pay cuts to drivers

Update: below you’ll find a statement from Uber.

Under the old UberEATS payment model, drivers were paid $1.80 per kilometre travelled, and paid a flat rate of $6.50. Uber would take a 35 percent cut from the order.

Under the new model, drivers are paid $1.05 per kilometre travelled, $2.90 for pickup, and $2.50 for dropoff. Uber will continue to take a 35 percent cut from the order. The decision to get rid of the $6.50 flat fee is apparently what will cause a massive reduction in pay for drivers; under the old model, if a driver picked up multiple orders from one restaurant, they would be paid a $6.50 flat fee for each order.

Now, even with multiple orders at one restaurant, drivers will be paid a flat $2.90 fee for pickup. Here’s a more succinct version of the new payout terms from the Reddit post:

    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

According to the Redditor, the payment changes could alter driver pay by as much as 30 to 50 percent across the board. It’s unclear if the changes will affect UberEATS across North America or just in Toronto (UberEATS also currently operates in Ottawa and Edmonton, according to the company’s website).

BetaKit has reached out to Uber for comment.

Related: Just weeks after UberEats scale-back, Toronto’s Feast halts on-demand delivery