With Uber’s surge pricing in place, the company is looking to squeeze as much profit as possible out of its rideshare business.
The company recently introduced an algorithm to help make sure that all of its drivers get a cut of the revenue from its ridesharing business.
Uber drivers make around $40 an hour, with a higher cap of $90 per driver.
Uber’s new algorithm lets drivers earn a 25 percent cut of their earnings when their average fares fall below $100 per trip, while all drivers earn the same cut when their fares increase above $100.
The Uber algorithm will apply the same rules to drivers across all Uber drivers.
Uber has been testing the new algorithm on a trial basis, with an average of 30,000 rides per day.
Uber says the company has found that drivers are consistently outperforming their peers, even after the algorithm changes.
Uber is trying to find a way to increase profits while minimizing losses for drivers and the company.
While the algorithm is not meant to replace traditional methods of profit distribution, the startup is trying out different ways to boost revenue while maintaining its high margins.
Uber plans to introduce more algorithms to its driver-partners over the next year to give them more control over how they earn their money.