July 21, 2017

Uber Admits To Manipulating Fares And Prices



Street signage board with Uber Technologies Inc. logo. Blurred office center and walking people background
Copyright: moovstock / 123RF Stock Photo

San Francisco had one of our standard Uber-hating hissy fits back in April of this year when Uber was served a lawsuit claiming that claimed Uber engaged in a scammy fare manipulation scheme that showed riders higher fares than drivers, with Uber underpaying their drivers and pocketing the difference. Now, an Uber executive has completely admitted to this on the record in an interview with Bloomberg , explaining that it’s all part of Uber’s new “route-based pricing” model that in some ways sounds even shadier than the alleged fare manipulation scheme.

In words that ought to win the Pulitzer Prize For Truth In An Individual Sentence, Bloomberg Technology ’s Eric Newcomer writes that “After months of unsatisfying answers, Uber Technologies Inc. is providing an explanation: It’s charging some passengers more because it needs the extra cash.”

In speaking with Uber’s head of product Daniel Graf explained that not all riders were being charged a different fare than the driver was being shown — only riders on higher demand routes were getting the increased fare. Route-based pricing is sort of like another algorithmic version of Uber’s surge pricing , except the price spikes are applied to areas with higher demand and where […]

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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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