South Florida Data Update: More Affordable Rides, Higher Driver Earnings
Since our launch in Miami in June 2014, and then an expansion to Broward and Palm Beach Counties in August 2014, we’ve provided 10,000 driver-partners with an unprecedented way to make a living or earn some supplemental income on their own schedule. And all the while, we’ve connected South Florida riders with an increasingly affordable way to move around, facilitating over a million rides in the area.
Since that initial launch, the average fare in South Florida has decreased by 20%, while at the same time driver earnings per hour have nearly doubled.
In January, we took a look back at our first 6 months in South Florida and found that both trips and driver-partner earnings per hour increased after a round of price cuts in the fall. We’re committed to making Uber the most affordable transportation option for the community and an attractive economic opportunity for South Florida entrepreneurs, so we’re revisiting the data to see how uberX has evolved for riders and driver-partners since our initial launch and two rounds of price cuts.
Here’s what we found:
As you can see, uberX driver-partners are earning nearly double per hour, while simultaneously, riders are paying 20% less per trip on average. The uberX fare cuts between September 2014 and December 2014, and again between December 2014 and March 2015, lead to huge growth in demand and increased earnings for our driver-partners.
How does this work?
It’s important to understand that the only time our driver-partner is earning money on our platform is when she or he has a rider in the car. That means the more time driver-partners spend with riders, the more they’re able to earn per hour.
Here’s a snapshot of what a typical hour looked like for driver-partners shortly after launch, again in December of 2014, and then just last month:
In a given hour, uberX driver-partners are now spending nearly half of their time on our platform with a rider, compared to less than a fifth of their time in September. Driver partners are delivering more rides, making more money, and helping to make our operations more efficient in South Florida everyday.
If South Florida regulators embrace ridesharing and put forth sensible regulatory frameworks for this innovative new option, we expect these beneficial effects to only get stronger over time—giving residents more affordable, reliable transportation choices and expanding economic opportunity for entrepreneurs in the community.
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