Cheaper Uber rides are proving to be the opposite of a good deal for some.

A contingent of drivers for the app-based ride-hail company plan to protest recently implemented fare discounts they believe have simultaneously slashed wages.

Saturday, Uber cut its prices in 80 cities, including San Diego, to counteract an expected seasonal slump in post-holiday demand.

A flier promotes a driver protest at Uber’s Partner Support Center on Friday. ( / Kevin McGraham)


Locally, passengers are receiving a roughly 30 percent discount per mile on UberX rides, the company’s most affordable e-hail option. UberX pairs travelers using the company’s smartphone app with amateur drivers who use their own vehicles and work as independent contractors. Uber also chopped its per-mile fees for UberXL, a similar option for rides in SUVs.

Now, disgruntled drivers, led in part by Uber driver Kevin McGraham of Mission Valley, will assemble Friday at 4 p.m. at Uber’s Partner Support Center on Miramar Road to protest the price changes.

“Our goal is not to piss off Uber. Our goal is bring attention to the drivers,” McGraham, 39, said.

McGraham, who has been driving for the ride-hail company since November, says that he was making $600 to $700 per week, and had “mostly positive” experiences prior to the fare reduction. The newly implemented rates, which require him to complete more trips to make the same amount of money, now have him questioning Uber’s motives.


Though the ride-hail leader in the U.S., Uber is, in most markets, dueling with rival Lyft, which recently raised $1 billion in financing, including $500 million from General Motors, and is valued at $5.5 billion. Uber, meanwhile, is reportedly exploring another funding round that would value its business at $62.5 billion.

The sentiment among some drivers is that Uber, which purports that the cheaper prices are to meant to help drivers route around the slow season, is amassing a fortune but not rewarding the people who do the actual work.

“Of course traffic is going to slow down (after the holidays) … but this is a kick in the head. Not only are we losing customers, we’re losing pay on top of that,” McGraham said. “They won’t cut their portion of the pie.”

In San Diego County, where Uber has roughly 12,000 drivers and 545,000 riders, UberX drivers currently make 90 cents per mile during non-peak hours. The company, however, takes a 20 percent cut of earnings, and drivers who started after Nov. 30 are subject to Uber taking a steeper, 25 percent portion of fares.


The company evaluates its per-mile rates on a market-by-market basis and may determine to roll-back rates to $1.20 per mile in San Diego if the seasonal promotion is deemed unsuccessful. Just a handful of days after the lower rates went into effect, Uber has yet to make any determinations. The company says, however, that it encourages drivers’ input.

Uber also instituted a rate guarantee for local drivers while the lower fares are in effect, promising workers at least $19 an hour during peak hours and $15 an hour during non-peak hours. The guarantees, which require specific driving milestones to be met, are still subject to Uber’s 20 percent or 25 percent take.

“Our Partner Support Center in San Diego is open five days a week for partners to speak one-on-one about any issues they may have,” said Christopher Ballard, general manager for Uber in San Diego. “We always welcome feedback from driver-partners here in San Diego and use their feedback to improve the partner experience.”

That’s little consolation for Oceanside resident William Feit, 67, who has been driving for Uber since July of 2014. The part-time ride-hail worker says he was driven to the business after being forced into early retirement a few years ago.


“When I started out, I was very happy doing this,” Feit said. “When I wanted to work, I was busy. When I wanted to work, I made money.”

Now earning less take-home pay per trip, Feit no longer sees a way forward through ride-hail, especially since he fears Lyft, where he also moonlights, will lower its rates in San Diego to compete with Uber.

“Lowering rates, when customers never complained about how much they were paying, that just doesn’t make sense to me,” he said.

But Tyler Felio, an Uber driver who lives in El Cajon, isn’t complaining. Quite the opposite. The 21-year-old supplements his income by giving rides to night owls in Pacific Beach. And he’s noticed an uptick in business during the wee hours of the morning since the new prices went into effect.


“I haven’t seen any decrease in wages,” Felio said.