Uber drivers across the country are abandoning the service after feeling they've been left out-of-pocket.

Auckland driver Arden MacDonald left his fulltime job last year to take up driving for Uber, but reapplied for his old job after driving for Uber became unsustainable.

The company said it had received positive feedback from its drivers, but MacDonald said while he was a "huge" Uber supporter early on, recent changes had made drivers unhappy.

Uber dropped prices by 20 per cent in April, while maintaining a 20 per cent commission for every ride.

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The company removed the requirement for drivers to carry a passenger endorsement when it launched in Christchurch in March and dropped the requirement for established services in Auckland and Wellington in April – a move labelled illegal by the NZ Transport Agency (NZTA).

The change meant the cost of registering as a driver fell from $2000 to $20, and the registration process took about six days instead of three months.

MacDonald said the drop in fare prices meant licensed drivers could no longer afford to rely on the service for their main income.

"A licensed driver has to pay for their P endorsement, for their commercial licence, for commercial insurance, income tax and GST. After costs, it works out that you are only making about $8 an hour."

Uber spokesman Caspar Nixon said many drivers were happy with the changes because lower prices resulted in higher demand, which meant more work for Uber drivers.

"We've learned that one of the best ways to increase driver-partner earnings is to boost demand for rides. And one of the most effective ways to boost demand is to lower prices for riders.

"For driver-partners, higher demand for rides means more time moving people, less time spent waiting around and more money in their back pocket."





NZTA access and use manager Celia Patrick said Uber's driver registration process was "far less rigorous" than the mandatory checks carried out by the Transport Agency, and prospective drivers could receive significant fines if they did not have the appropriate licence.

"As a safety regulator we have no interest in standing in the way of innovation, but we have a responsibility to ensure that people carrying passengers for a living have been properly vetted and understand their responsibilities under the law."

Ben Wilson, chairman of the New Zealand Uber Drivers' Association, said his organisation was building a legal case against Uber that would prove drivers suffered a drop in income and an increase in workload from the pricing changes.

"Lots of the drivers were former taxi drivers who came to Uber because they thought it was a better service, but with these price cuts they are having to go back to traditional taxi driving."



Auckland driver Leon Leang Khan had also stopped working for Uber and, saying drivers "cannot make a living" from the company.

"They are very upset and they are leaving the company. Uber is running out of drivers."

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