Uber is in the midst of several lawsuits and has a controversial CEO leading the company. It also has to placate its own growing horde of dissatisfied drivers who complain that their revenue potential is dropping, even while Uber exaggerates how much its drivers earn . Bloomberg reports that Uber may have yet another problem on its hands with its new “upfront pricing” fees. The feature, introduced last year, allows Uber to charge some passengers more for their rides. The problem is that Uber hasn’t changed the way it pays its drivers; they’re still generating money the same basic way, based on time, distance and mileage.
Accusations that upfront pricing benefits Uber rather than drivers are nothing new. Blogger Christian Perea at The Rideshare Guy complained that Uber was secretly overcharging passengers and not paying drivers, and there was a lawsuit filed alleging the same thing this past April.
According to Bloomberg , Uber’s head of product Daniel Graf has said that upfront pricing uses machine-learning to figure out how much riders are willing to pay for a given ride and then charges them accordingly, a feature he called “route based pricing.” Bloomberg interpreted this to mean that riders traveling routes […]