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Gett is undercutting Uber's commissions in New York to entice unhappy drivers

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E-hail company Gett announced a new fee structure for its drivers in New York City this week, prominently advertising a 10 percent take from fares — a commission that undercuts Uber by at least 10 percent. Gett also lets passengers tip their drivers and lets them keep all of it; Uber hasn't implemented in-app tipping, despite the fact that tipping is now a very, very good idea.

Uber recently cut fares in the brutally competitive ride-hailing market of New York City by around 15 percent in a bid to undercut yellow cabs, and — to hear Uber tell it — increase the amount of time that drivers have fares in their cars. That move led to some discontent among drivers, and Gett looks like it's trying to capitalize. Until now, Gett's payment model to drivers was decoupled entirely from the fares it charged riders, offering a per-minute fee that could substantially outpace Uber on longer rides, as Uber Driver Diaries notes in this 2014 post. Now, Gett's rates are identical to UberX's — $2.55 plus $1.75 per mile plus $0.35 per minute — but the difference in commission is substantial, as long as Gett can deliver drivers enough fares.

This isn't Gett's first stunt to build ridership and driver participation: it ran a promotion last year to refund Uber surge prices to passengers in New York, billing itself as a surge-free alternative.