Uber is testing out a new way to pay; and it’s all about the destination. In a recent interview with Bloomberg Uber detailed a new pricing plan it has been testing in certain cities for the past few months. It’s called route based pricing and it charges passengers based on what Uber thinks they’re willing to pay. And the details of your trip are what helps the company come up with the number to charge. For example, someone traveling from a wealthy neighborhood to another high end area will be charged more than someone heading to a poorer part of town even if demand, traffic and distance are the same. Uber says this helps give passengers upfront pricing and provides more transparency. But not everyone is on board with the new model. Drivers say they have been noticing more of a gap between what people pay and what they receive since route based pricing began. To ease concerns Uber will begin sending drivers the price a passenger is paying and will send them an updated terms of service agreement. And maybe a little extra cash.Route Based Pricing
Uber is testing out a new way to pay; and it’s all about the destination. In a recent interview with Bloomberg Uber detailed a new pricing plan it has been testing in certain cities for the past few months. It’s called route based pricing and it charges passengers based on what Uber thinks they’re willing to pay. And the details of your trip are what helps the company come up with the number to charge. For example, someone traveling from a wealthy neighborhood to another high end area will be charged more than someone heading to a poorer part of town even if demand, traffic and distance are the same. Uber says this helps give passengers upfront pricing and provides more transparency. But not everyone is on board with the new model. Drivers say they have been noticing more of a gap between what people pay and what they receive since route based pricing began. To ease concerns Uber will begin sending drivers the price a passenger is paying and will send them an updated terms of service agreement. And maybe a little extra cash.