RIO DE JANEIRO, BRAZIL – 99 today announced that it will increase drivers’ pay between 10% and 25%, following tests with higher rates paid in 20 regions over recent weeks. The new payment policy will now apply to all 1,600 cities where the app currently operates its urban transportation service.
According to 99, the measure aims to boost drivers’ income and also mitigate the negative impact of the hike in fuel prices in Brazil this year. The company further says that the change “takes into consideration the maintenance of the platform’s balance.”
Despite the increase in earnings, the prices for passengers should not rise, as the company is committed to supporting “most” of this increase in drivers’ pay.
The pay adjustment is not a promotion and applies to the app’s 99Pop, 99Comfort, 99Poupa, 99Share and 99Delivery categories.
99 has also introduced discount programs at gas stations along with the Shell Box mobile app and the 99More Gains program, which has financial incentives for drivers.
99’s director of operations and products Livia Pozzi outlined the new adjustments for drivers in an interview.
Q: What prompted drivers’ pay raise?
A: Our drivers are our partners. We are closely monitoring the fuel hikes, and listening to their needs. Since early this year we’ve been promoting initiatives to offer more savings for drivers on our platform.
For instance, we increased the discount on fuel to 10% in a partnership with Shell, which represented savings of over R$5 million (US$917,000); we also developed fare exemption initiatives for some trips, which have led to extra earnings of more than R$10 million; in addition to other financial incentive programs and a frequent review of our policies.
We have reached a point where the consecutive readjustments in fuel prices have had a very negative impact on the earnings of our partner drivers. Therefore, given this challenging macroeconomic scenario, we decided to increase drivers’ pay by 10% to 25%. We also felt that this increase would be necessary throughout Brazil, to improve the situation of all 99 partner drivers.
In 2020 alone, 99 injected R$15 billion into the Brazilian GDP through the value generated by its drivers and their households. Therefore, our goal is to continue to have a positive impact on the Brazilian economy and society.
Q: How will passenger prices be impacted in the coming months?
A: Our commitment at 99 is with the whole Brazilian society, driver partners and passengers. We can’t neglect the people who need the service, particularly at a time when we are still fighting a pandemic. That is why we are going to be funding most of this increase in earnings for our partner drivers.
Shorter trips may be minimally adjusted for passengers in the coming months. Our mission is to remain an affordable option for people who need to get around, so we will keep the longer rides unchanged.
Q: Could you provide an example for each payment situation: 10% and 25% increase in earnings?
A: 99’s partner drivers have transparent access to the details of their earnings after each trip within the app itself. 99 is the only one to have clear rate charts, by city, so drivers can compare and be assured that they have received their adjustments. Most of the adjustments in our partner drivers’ earnings occurred in the mileage and minimum rate, which vary by city.
For instance, a driver in São Luís do Maranhão used to earn approximately R$18 for a 13-km trip before the readjustment and now earns around R$21, with no dynamic fare; in Belo Horizonte, a driver would earn about R$9 for a 10-minute or 5-km trip and today earns about R$10. I invite all our partner drivers to check the charts and the increases.
Q: How was the response to the pay increase in the first locations?
A: Initially, we increased the earnings of our partner drivers in 20 metropolitan regions. The response was very positive and this is partly what prompted us to expand it to the whole of Brazil in just two weeks.
Q: Do higher payments for drivers trend to increase the volume transacted on Conta99?
A: Yes, there is a proportional growth trend in the volume transacted. 99Pay is the digital wallet used by passengers.