Uber has said that it will now have an upfront fare for its customers in the US and parts of India. This will make it easier for customers to see how much they will have to pay for a ride. The fare will be calculated on the basis of expected travel time, distance, traffic, surge and tolls where applicable. The move comes in the wake of many complaints about surge pricing from users as well as governments.
Speaking about this, an official blog post from Uber executives said, We moved to upfront, per trip fares-just like airlines and hotels-two years ago when we launched uberPOOL. So in April, we began slowly introducing upfront fares for regular uberX trips in cities across the U.S. and more recently in India, with more to follow. To date, hundreds of thousands of riders have experienced upfront fares as part of this rollout. Uber has been testing upfront fares for a small segment of riders across five cities in India since the beginning of this month. These cities include New Delhi, Kolkata, Mumbai, Bangalore and Chennai.
The changes to pricing will be globally applied over the next few months. At that time, it will also apply to other cities in the country. At the moment, in the US, upfront payment feature is available in six cities, which are, New York City, Miami, San Diego, Philadelphia, Seattle and New Jersey. Users will need to mandatorily enter their destinations so that the Uber app can calculate the fare.
The blog post said, Knowing how much a ride will cost in advance is clearly something riders appreciate: today uberPOOL accounts for over 20 per cent of all rides globally. And we now want more riders globally to benefit from this feature. Now, when fares go up due to increased demand, instead of surge lightning bolts and pop-up screens, riders are given the actual fare before they request their ride. There`s no complicated math and no surprises: passengers can just sit back and enjoy the ride.