Uber Upfront Pricing – Guaranteed Uber Rates
Uber’s pricing system can sometimes seem complex for new users.
Uber is currently refining its in-app pricing system, so that riders will have a much better idea of how much their Uber trip will cost before they travel.
What is Upfront Pricing?
Uber started experimenting with an ‘upfront’ pricing model when the company began its UberPOOL program two years ago.
When using UberPOOL, riders enter destinations which are matched with other potential customers (who might be headed the same direction). This ‘matching’ system allows Uber to calculate projected fares (before an actual ride is complete) and provide a fare estimate to UberPOOL passengers before they confirm a ride.
Bringing UberPOOL’s Pricing Tech to All of Uber’s Other Services (UberX, UberBLACK, etc)
Uber discovered that its passengers appreciated knowing how much a ride might cost in advance of booking a trip.
So, in Spring 2016, Uber began integrating ‘upfront fares’ to its various services in some cities — specifically, UberX trips.
How are Uber’s Upfront Fares Calcuated?
Upfront fares are calculated using a few factors:
- the expected distance of a trip
- the expected duration/time of the trip
- local traffic conditions
- how many riders are in a given area
- how many drivers are using Uber in a given area
When Uber’s prices rise because of increased demand, riders will be shown actual fare estimates before they request their ride (i.e., riders will not simply be shown ‘surge icons’ like lightning bolts, etc, or any other price-increase warning screens).
With Upfront Pricing, there is no longer guesswork or unfortunate pricing ‘surprises’ involved — passengers will simply be shown their fare before a ride begins (similar to a hotel booking, or a flight reservation).
When will Upfront pricing be available to all of Uber’s customers?
Upfront pricing is currently being rolled out across the United States, and parts of India — expect to see it integrated more widely throughout late 2016, and into 2017.
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Example graphic: How ‘guaranteed & upfront Uber pricing’ will look on a rider’s smartphone:
