June 24, 2017

Uber may charge you more based on where you’re going



Apple iPhone SE smartphone with Uber app on screen
Copyright: gdolgikh / 123RF Stock Photo

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 […]

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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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