Delivery couriers for Uber Eats have welcomed the latest earnings increase, which they say will go a long way in light of the food delivery app’s dwindling sales in recent weeks.
Yesterday, Uber Eats announced a 5% increase on the per kilometre rate for delivery people across the country, at no additional cost to customers and merchants.
In a statement, the food delivery app says it believes this rate change, together with the 10% increase that was implemented in April, will have a positive impact on delivery people's earnings, especially on the back of pressures resulting from rising costs.
In January, frustrated Uber Eats customers took to Twitter to complain about not being able to place their food orders via the app, after hundreds of couriers downed tools.
The protest came after the couriers had joined a larger e-hailing strike held outside Parliament Street in Cape Town, against low wages and lack of regulation in the industry.
“The increase is gladly accepted by all courier drivers. Honestly, full-time drivers have seen a slight decrease in orders across the board, but have still managed to maintain average weekly gross earnings of about R2 500 across the country, which is not bad at all,” says Duane Bernard, delivery driver and spokesperson for Uber Driver Partners SA.
Bernard previously told ITWeb the couriers were “fed-up” with Uber Eats ignoring their request to negotiate the low delivery fees, as well as their plea for better insurance cover offered by Uber Eats.
According to Bernard, the tide is turning as the company has now also moved to provide couriers with better insurance cover, which he describes as “a big step in the right direction”.
Delivery people also face challenges on the road, especially those on scooters who are more vulnerable to safety risks, such as robberies.
To help mitigate these, the company says it offers safety features, including helmet detection tools and an in-app emergency button.
Charles Mhango, head of operations for Uber Eats Sub-Saharan Africa, explains: “This rate increase is one way we have responded to challenges delivery people face when operating their businesses on our platform. It is through the regular roundtable discussions we host for delivery people that we get to understand these pressures more intimately, so we can implement appropriate interventions to help support their businesses.”
Uber Eats recently collaborated with MotionAds, to provide couriers with an opportunity to earn additional revenue through top-box advertising in South Africa. These brand placements are expected to increase delivery people’s net earnings by approximately 10%, noted the company.
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