Ride-hailing: How to Incentivise Drivers?
Former Strategy & Operations Manager at Uber
inpractise.com/articles/ride-hailing-driver-incentives
Why is this interview interesting?
The relationship between driver incentives, take rate, and driving scale for ride-hailers.
Ride-hailing: How to Incentivise Drivers?(November 30, 2019)
Cornelius Schmahl
Former Strategy & Operations Manager at Uber
Cornelius joined Uber in 2013 and ran various launched the service in various different countries across Europe and Africa for five years. He was responsible for launching Uber Germany and led driver acquisition and marketing across both B2B and B2C channels in the region. In 2016, he then launched Uber in South Africa and managed teams rolling out Uber in Uganda, Ghana, and across various other regions in Africa. Cornelius then moved to Moscow as Interim COO of Uber in Russia where he had full ownership of the region’s P&L before leading the $3.7bn merger with Yandex Taxi in 2018.
Interview Transcript
What kind of incentives do you normally give?
There are two types of incentives: “Do 50 trips, get something,” keeping them busy on the app, and doing less “dual-apping,” and the others are incentives to reduce surge, guarantees to encourage drivers to be online at certain times in certain areas.
It’s clear, for long-term sustainability, you need to capture the drivers, train them as an asset, really get them engaged in your business. I’m struggling to understand the relationship between reducing the take rate, which would invite more drivers because they can earn more.
The question is how they get it. Do they get it in a flat way, or do they get it in a way that has an effect on them? The question is, how efficiently do you give it to them?
So, the most efficient way is reducing the take rate?
I think that’s the least efficient way.
It’s the easiest, but it’s not efficient for the ecosystem?
It’s not efficient for the ecosystem or the drivers.
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