Uber Faces Protest from New York City Drivers

NEW YORK: Uber Technologies drivers in New York City protested against the mobile car-booking company's rising commissions and lower fares, posing the latest stumbling block for the startup as it races to expand.

The drivers, who dub themselves the Uber Drivers Network, gathered on September 13 in Woodhaven's Forest Park Drive, where a crowd of about 200 exchanged information about how to organise better as a group so they could effect change.

Many said the company was forcing them to take passengers who request rides through the cheaper UberX ser vice, rather than just the pricier Uber black-car or SUV service, thereby hurting fares. Uber on September 13 changed its policy so drivers can opt in or out of driving for services like UberX.

Some of the drivers also said Uber is leaving them with just 62 per cent of fares, after the San Francisco-based company initially agreed to give them 80 per cent of the price of a ride. The drivers said they plan to protest each week, with another demonstration in front of Uber's Long Island City office on September 15.

"We're not going to get tired," said Abdoulrahime Diallo, 28, a driver from the Bronx who was helping to lead the protest. "We're going to do the same thing over and over and over again."

Uber has faced opposition from taxi drivers worldwide as it has up-ended the transportation industry. The protest in New York, which is the company's biggest market by revenue, indicates disgruntlement within the service's own ranks. That could potentially crimp Uber's efforts to recruit new drivers as it rolls out its service in more cities globally. The company, started in 2009 by CEO Travis Kalanick and co-founder Garrett Camp, raised $1.2 billion in a June financing that valued it at $17 billion.

DRIVER TREATMENT

"We are constantly looking for new ways to enhance driver earnings," an Uber representative said.

The issue of how Uber treats its drivers has already found its way to court.Labour lawyer Shannon Liss-Riordan has sued Uber in Suffolk County Superior Court in Massachusetts twice -once in 2012 and again this year -for issues including allegedly withholding gratuities from drivers.

Uber typically charges a 20per cent commission on rides. In March, it raised the fee it takes for its pricier black-car service to 25 per cent from 20 per cent. Uber also charges a 28 per cent commission for trips on its SUV service.

In New York, Uber temporarily cut fares for its cheaper UberX service by 20per cent in July. Some drivers said that the reductions have since become permanent.

SUSPENDED DRIVERS

Drivers for the black-car service and SUV service said Uber last week told them they must take requests to drive passengers for the less-expensive UberX, or lose access to the app.

One driver, Hatem Maher, 49, said he declined to take UberX passengers and was suspended by the company for 24 hours earlier this week.