- In a trend that is gaining momentum, a number of Uber and Lyft drivers are opting to negotiate directly with passengers to arrange rides independent of the ride-hailing apps.
- These drivers express a pressing need to supplement their earnings, which they indicate have sharply declined due to insufficient pay for their services through the rideshare platforms.
- Both Uber and Lyft have raised significant safety and insurance issues, warning that circumventing the apps could lead to severe consequences for drivers and passengers alike.
In a notable shift in the rideshare landscape, some drivers for services like Uber and Lyft are providing passengers with a tempting alternative: cutting out the app entirely, agreeing on a price beforehand, and settling the fare in cash or via platforms like Venmo. This practice has emerged as drivers, facing decreased earnings, see the opportunity for improved compensation by bypassing the apps. Reports indicate that some drivers have earned as little as $3 for certain trips, while direct negotiations can yield fares that are much more favorable — even at the risk of compromising safety and violating company policies.
Discussions about this practice have proliferated on platforms like Reddit and Facebook, where drivers share insights about the acceptability of asking riders to cancel their requested rides in favor of direct payment. Simultaneously, some passengers have begun sharing their experiences and perspectives concerning these sidestepped transactions.
A striking example surfaced in a TikTok video from last year, which depicted an Uber driver suggesting to a passenger, who was recording the exchange, that she pay him $70 in cash for a ride listed at $80 through Uber. The driver candidly expressed that Uber’s compensation was inadequate, and he was simply being “nice” by providing a discount. The individual behind the video did not respond to requests from Business Insider for additional commentary.
Michael Moya, an Uber driver based in Boston, noted that it is not uncommon for drivers to engage in conversations about offering the option to passengers to forego app payments in favor of cash or alternative apps. However, he cautioned that this could backfire, as Uber and Lyft could deactivate drivers’ accounts if they were reported. “Some drivers have contemplated accepting payment outside the app, but it’s a gamble,” Moya stated. “We risk losing our accounts if a passenger reports us, which is why the majority of drivers steer clear of this practice.”
Cancelling a ride can incur costs for riders too. Uber imposes a cancellation fee if the request is canceled after a few minutes, while Lyft similarly charges fees for riders canceling “more than 30 seconds after the driver accepts your ride,” according to the company’s policy.
“For the safety of both drivers and passengers, we strongly encourage them to only take trips requested through the Uber app,” said an Uber spokesperson. This representative also emphasized that riders can utilize features such as audio recording of their trips, emergency buttons, and sharing their trip details with contacts in case of unexpected issues during the ride. “Off-app trips are not just against our policies but also violate many regulations, and drivers who engage in this activity risk losing their access to the Uber platform,” the spokesperson added. Lyft has not commented on this developing situation.
The financial lure to engage in side deals with passengers is undeniably significant. Both rideshare drivers and delivery workers for companies like Uber Eats and Instacart have reported heightened competition for the most financially rewarding jobs within these platforms, leading to even greater scrutiny of driver earnings.
Many rideshare drivers have shared their frustrations, citing that they often receive less than half of what customers pay for their rides. An Uber driver from Massachusetts illustrated this point by sharing screenshots of a ride that cost the passenger about $156 but yielded the driver only about $74 after Uber’s cuts and applicable taxes were taken into account. There is a pervasive lack of awareness among many passengers regarding the low compensation drivers typically receive, and some drivers report that discussions around pay can lead passengers to be more open to negotiating outside the app.
“I’ve had conversations with passengers who believe we keep all the money,” the driver remarked, highlighting a critical gap in understanding that may be influencing these off-app payment discussions.
Do you work for a rideshare or gig delivery service and have a story idea to share? Reach out to this reporter at abitter@businessinsider.com
**Interview: Exploring the Rise of Off-App Rideshare Negotiations**
**Interviewer:** Thank you for joining us today, Michael Moya, an Uber driver based in Boston. We want to discuss the emerging trend of drivers negotiating directly with passengers for cash rides outside the Uber and Lyft platforms. Can you start by sharing why this practice is becoming more popular among drivers?
**Michael Moya:** Thank you for having me. The main reason drivers are starting to negotiate off-app is the significant decline in earnings. Many of us have experienced rides where we only earn a few dollars, and with the cost of living rising, it’s becoming increasingly difficult to make ends meet. Direct negotiations can result in much better compensation for the services we provide.
**Interviewer:** That sounds understandable given the circumstances. But what risks are associated with this practice?
**Michael Moya:** Well, it’s a bit of a gamble. Engaging in off-app transactions puts drivers at risk of deactivation. If a passenger reports us for not adhering to Uber or Lyft’s policies, we face losing our accounts entirely. This is why most drivers are hesitant to take the plunge into this practice despite the potential for higher earnings.
**Interviewer:** Interesting. We’ve seen discussions about this topic proliferate on social media platforms. Can you share your thoughts on how these conversations are shaping drivers’ decisions?
**Michael Moya:** Absolutely. Social media has enabled drivers to share experiences, tips, and even concerns about the consequences of accepting payments outside the app. It creates a sense of community and support; however, it also highlights the risks. Drivers are weighing the temptations of higher pay against the fear of losing their livelihoods.
**Interviewer:** In light of the safety concerns raised by Uber and Lyft, how do you feel about the warnings against off-app transactions?
**Michael Moya:** I think safety should always be a priority for both drivers and passengers. While I understand the concerns, we also need to consider the drivers’ perspectives and financial struggles. It’s a complex situation where we need to balance economic pressures with safety considerations.
**Interviewer:** Certainly, and it’s a vital conversation to have. what advice would you give to fellow drivers considering this practice?
**Michael Moya:** My advice would be to think carefully before engaging in off-app negotiations. Understand the risks involved and assess your own financial situation and comfort level. If drivers do choose to venture down that path, they should be discreet and prioritize safety for themselves and their passengers.
**Interviewer:** Thank you, Michael, for sharing your insights on this developing trend in the rideshare industry. Your perspective sheds light on the challenges drivers are facing and the complexities of navigating these issues.
**Michael Moya:** Thank you for having me. It’s important to keep the conversations going.