Beginning on Tuesday, Uber is raising its rates in 8 states throughout the US in an new initiative to make customers pay costs of a new pilot program aiming to provide drivers with an injury protection as well as income security insurance.
Uber partnered with Aon and One Beacon to provide their drivers with an option to buy injury protection insurance.
Their coverage applies during the time drivers are signed into the Uber app, regardless of whether they are ready to pick up someone or are in the midst of a trip. The cost for drivers is at 3.75 cents-per-mile.
To fund the program, rates are now being raised by a mere 5 cents for each mile in Pennsylvania, West Virginia, South Carolina, Delaware, Arizona, Oklahoma, Illinois, and Massachusetts. It is only applicable to drivers in the listed eight states.
For example, in Harrisburg, the fee per-mile is at $1.05. This new pilot program is going to raise that fee to $1.10.
There are over 20,000 Uber drivers working in Pennsylvania, the company stated.
Gus Fuldner, the company’s head of insurance and safety, said that the raises in these rates are there to remove financial barriers drivers may face if they want to purchase offered insurance.
“We believe drivers should have a low-cost option for protecting themselves and their families from rare and unpredictable accidents that prevent them from working,” said Fuldner.
“That’s why we’re partnering with One Beacon to make this product and pilot it, to allow drivers to access peace of mind for a few cents a mile directly from the app.”
“Uber is not making any money off of this,” said Fuldner. “We think this is an option drivers should have to protect themselves and their families.”