June 24, 2017

Uber admits it charged riders more than what drivers saw

UBER partners waiting to be entertained at Kuala Lumpur Partners' Service Centre. UBER is a rideshare facility where users can earn money by becoming a driver.
Copyright: imagesbyhafizismail / 123RF Stock Photo

A recent report found that Uber has been charging riders a different price than what drivers thought they were being charged. (James Chan/Special to S.F. Examiner) Since last year, Uber drivers suspected that riders were being charged one price, while drivers themselves were seeing another, often lesser price when the trip was done.

Turns out, drivers were right.

In a Bloomberg News interview published Friday, Uber revealed they were indeed charging riders a different amount than drivers saw as the charge for a trip.

That’s significant, Christian Perea, a San Francisco-based Uber driver said, because riders may be charged a higher amount upfront — say, $25 to go downtown — but drivers will only earn a percentage off a smaller charge, like $20, when a trip is complete.

Uber pockets the difference, Perea said.

“More often than not, the driver would end up earning less on that ride then what Uber charged you, the passenger,” Perea said, because the driver would take a more efficient route than Uber’s upfront pricing system “guessed” the driver would take.“It was in Uber’s interest to charge a little higher,” he added.Perea is also a writer for the blog The Rideshare Guy, followed religiously by thousands of Lyft and […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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