The driver for a delivery service that lets drivers negotiate prices for delivery goods is getting paid just $5 an hour.
The $5 per hour pay rate for drivers for UberX, an app-based service, will be announced Thursday by the company, a move that could spark protests by drivers.
The company is the subject of several investigations by the Federal Trade Commission, the Federal Communications Commission and state regulators after drivers complained that they weren’t paid for the work they did for Uber and other services, and that drivers weren’t treated fairly.
The new pay rate, which will be phased in over a year, comes as the company’s market valuation is in free fall and is the focus of a congressional investigation.
The pay rate will be based on the number of trips that a driver makes, not the number that a customer picks up, said John Miller, an Uber spokeswoman.
Uber has been in the spotlight for its labor practices, including its refusal to pay its drivers for time spent at a customer’s house or car.
The company has also faced pressure to improve its drivers’ working conditions and wages.