Uber Eats strike in Gauteng may spread to other cities as drivers protest fare cuts

• Uber Eats drivers in Johannesburg and Pretoria have refused to work on Friday and Saturday, protesting recent cuts in delivery fees.
• According to a representative, they now only earn R4 per kilometer.
• A nationwide strike will begin on Wednesday, if Uber Eats does not respond to your requests.
• For more articles, go to www.BusinessInsider.co.za.

A strike among Uber Eats drivers nearly paralyzed the food delivery service in Gauteng for the past two days, and could begin across the country as of Wednesday.

Duane Bernard, who represents Uber Driver Partners, says drivers are protesting the steep drop in their income in recent months after Uber Eats cut delivery fees.

Bernard says the vast majority of Uber Eats drivers in Johannesburg and Pretoria did not work on Fridays and Saturdays. Some restaurants have also turned off their Uber Eats service in support, he says.

The drivers will go back to work Sunday so Uber Eats has a chance to consider their demands. Bernard says that if they haven’t received a response by Wednesday, drivers across the country have vowed to start a nationwide strike next week, according to Bernard.

“We are aware of a group of couriers who went offline in Johannesburg and Pretoria,” an Uber Eats spokesperson told Business Insider SA. The company says it is currently “interacting” with the delivery men, but Bernard says he is not aware of any recognition from the company.

In response to pressure from restaurants, Uber Eats recently cut its delivery fees from 30% per delivery (plus 5% for the driver), to a capped fee of around R9 per meal, says Bernard.

While driver rates vary in different areas, Bernard says drivers currently earn around R4 per kilometer.

Drivers want a minimum delivery fee of R20 for the first two kilometers for Uber Eats deliveries, and for Uber’s new messenger service, Uber Connect, drivers want a minimum of R30 for the first two kilometers.

“There is no courier service that can handle R4 per kilometer,” says Bernard. Drivers also want Uber to limit their courier deliveries to less than 100km, as many drivers use scooters and cannot access the roads.

READ | Uber Eats motorcycles will now deliver your package weighing up to 15kg nearby, fast

In addition, drivers are opposed to blocking their accounts “for no apparent reason” and also want Uber to stop using labor intermediaries. They claim that applicants who apply through these third parties have to pay hefty fees, but if they apply directly, they end up waiting many months to get activated on Uber Eats.

Bernard says Uber Eats is exploiting its drivers and maintains that average earnings have halved in the past three years.

For his part, the Uber Eats spokesperson says the more affordable rates are designed to help delivery drivers by driving user demand for more people to order more frequently through the Uber Eats app. “As a result, delivery partners will spend more time making deliveries and less time sitting idle waiting for orders.”

The spokesperson said the company implemented “temporary incentives” for couriers to compensate for the rate cuts.

Its sister service, Uber, also recently introduced a new, cheaper option that starts from R19 per ride, predominantly using hatchbacks. This followed a similar move by Bolt, whose cheap “Bolt Go” option sparked a nationwide strike in November as drivers complained of the impact on their earnings.

Earlier this year, the Competition Commission issued a scathing report on the practices of electronic calling services in South Africa, stating that some of its drivers earn below minimum wage.

Uber Eats users in Gauteng have expressed frustration at the disruption of service on social media:

READ | Bolt Go may be cheaper than driving your own car, but wait times are long and drivers few

Receive a daily news update on your cell phone. Or receive the best of our site by email

Go to the Business Insider home page for more stories.