Uber Fees Looking At Charging You What They Think You Are Willing To Pay

May 22, 2017

© Farrukh Maqbool | Dreamstime

Fans of Uber, the transportation network company that employs private citizens as chauffeurs, may not be a fan of the company's latest pricing model, which isn’t based purely on time and distance, but on what the company thinks you’ll be willing to pay.  The "route-based pricing" system will use a computer algorithm based on your location, destination and time of day to adjust the price you pay.  So you may be charged more if you Uber from a financial office downtown to the airport than if you were traveling from your home to an airport, even though both trips are equal in distance and at the same time of the day. It also means that could leave Uber travelers in less wealthy neighborhoods with less options as Uber drivers opt for the higher-priced routes in richer necks of the woods.  The new pricing policy is now being tested in 14 large metro areas now to see if it is worthy enough to roll out nationwide.  However many cities will be looking closely at this pricing models, especially in areas where local regulations require ride-hailing services to offer equal access and levels of service to everyone.

SOURCE: Bloomberg

See and hear more from the 98.5 KTK Morning Show