June 22, 2017

Uber is charging some riders more for high demand routes

Rider reading newspaper in the back of an uber
Image Courtesy of UBER

Uber has been charging some passengers differently based on the routes that they’re taking, according to a pair of reports in Bloomberg and Business Insider . The goal of the pricing scheme is to help entice drivers in those areas to help reduce wait times for passengers.

Traditionally, Uber has charged riders based on the mileage, time on the road, and surrounding demand. Last year, the company has been testing a route-based pricing with its UberX service in 14 cities that also use UberPool, in which it charged customers more for high-demand routes. Bloomberg spoke with Uber executives , who said that the company is using machine learning to figure out when riders are willing to pay more for their ride in certain areas.

However, drivers for those high-demand routes won’t see an increase in pay. The difference between those increased fares and the driver’s pay goes to Uber, which in turn uses it to pay for promotions, “such as dropping the price of an UberPool route from $10 to $8,” according to Business Insider . “Instead of drivers making less on the $8 fare cut, Uber will still pay them based on the $10 fare.” The company stressed in a […]

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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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