In a controversial move, Uber has started to charge riders a premium based on where they’re traveling.
Uber generally determines pricing by taking into account a trip’s distance and duration as well as the level of demand in the area in which it originated. Now, though, it’s charging extra to certain customers who travel along particular high-demand routes.
After losing more than $2.8 billion last year — excluding what it lost in China — Uber is trying to increase its revenue and build a sustainable business, Daniel Graf, Uber’s head of product, told Business Insider in an interview at the company’s San Francisco headquarters Friday. The company is also trying to offer a better experience for customers and drivers, he said.
The pricing move “creates more trips in the city,” Graf said. “More trips in the city means less wait times and shorter pickups time for riders and drivers.”
The change comes at a precarious time for the company as it tries to repair its image and rebuild customer trust. In January, more than 200,000 customers cancelled their accounts in just one weekend as part of a #DeleteUber campaign. The company has since been battling a […]