We have been enjoying the convenience and comfort of taking Uber services for our commute but I'm sure you also wonder how Uber comes up with the fare we have to pay for a certain ride, don't you?
Yes, our UBER fare varies for each ride and there are factors involved. And that's what I'm going to tell you about in this article. After reading this, I expect that you will be able to estimate how much you are going to pay for a certain ride and not get surprised anymore by the cost.
- 4 Basic Criteria Which Uber Uses to Determine your Ride Fare
- How are pricing rates calculated?
- Minimum fare
- Estimate before you ride
- Rates aren't flat throughout the US
- Pricing matters
Its highly likely that you've heard or ride sharing services like Uber; as a matter of fact, most of us have taken a ride with an Uber driver in the past. But, are you familiar with pricing and fares? How does the fare schedule work? Are you paying per ride, per distance, per passenger? These are a few of the basics as it pertains to Uber rides, Uber pricing, and how much you are going to pay for your ride with an Uber driver.
4 Basic Criteria Which Uber Uses to Determine your Ride Fare
1. Bare fare - This is a flat rate which is charged at the beginning of your ride.
2. The cost per minute - This is the price you are charged per minute of the ride with your Uber driver.
3. The cost per mile - This is the rate you are paying per mile in an Uber vehicle; and,
4. Booking fee - This was previously referred to as safe rider fee, which is a flat rate to cover the vehicle. (These operational costs for the vehicle aren't included with the Uber Black or SUV service).
So you will at least have an estimate of what price you are going to pay per ride when you choose to use ride sharing services. And, the Uber app is an extremely great estimate of the price you are going to pay for the ride with your Uber driver.
How are pricing rates calculated?
Uber is going to use a simple formula when calculating the price you will pay for a ride with an Uber driver. The bar fare is added to the cost per minute which is multiplied by the time you are in the ride. This figure is then added to the cost per mile which is multiplied by the distance. To these figures, you add your booking fee. This will be the total price for the ride you are taking with an Uber vehicle.
Yes, there is a formula which Uber uses to calculate how much you are going to pay for your ride; with this in mind, for extremely short distances and trips, there is a minimum fee in place by Uber. For each service, Uber does set a minimum fare; this is done simply to ensure drivers are fairly reimbursed for shorter drives and trips which customers call them for. So if the ride is only a couple miles, or only takes a few minutes to reach the destination, there is a minimum rate which customers are going to pay for these rides.
If the sum of the pricing equation above is below the minimum fare which is set by Uber, customers are required to pay the minimum fare. So, as a basic example, if the ride (equation) comes to a total of $2.50 traveling a couple of miles with UberX, passengers would still pay a minimum rate. If the minimum in the area is set to $5.00 (or other figures), passengers are going to be charged this minimum rate for the trip they take with the Uber service driver.
Estimate before you ride
In recent years, Uber has made figuring out how much you will be charged for a ride much easier on the customer, simply so they can have a basic idea of the cost per ride. So before you request a ride with your Uber app, you can estimate the price you will be paying for these services. The "up front "service was added to the Uber app in 2016. This allows customers to see how much the fare is going to be for their ride, prior to booking with a local driver.
This not only makes it easier for passengers to know exactly what they are going to be paying for their ride-sharing services, it also allows passengers to have a sufficient amount of funds in their account, to ensure drivers are going to be paid for the ride services they provide to passengers as well.
So, how do you get your ride estimate before calling Uber? You will initially have to download the Uber app onto your smartphone. You will input your destination, and a "fare estimate" will appear based upon which Uber service you choose (X, Black, SUV, etc). You can also see estimates for other ride-sharing services of a similar distance, allowing you to compare the pricing of Uber services, to ensure you find the best pricing possible when you choose to use the ride-sharing service.
Rates aren't flat throughout the US
It is important to note that minimum fares, rates per mile, and other factors which go into calculating your ride fare, do vary from city to city and state to state. UberX, XL, SUV, and Black, also carry different rates depending upon where you are using the services, so customers should consider this prior to using the ride-sharing services. You can see the rate in your city through the desktop or the Uber app you download onto a smartphone.
It is important to note these differences if you travel frequently for work or pleasure, and would like to use the services in an area which is not where you usually use it. Not only will this give you a better estimate of the rate you are going to pay for your ride, but also allows you to allocate a budget for traveling with Uber when you are in a new city or location which you have never used the services before in.
With Uber, you are not only going to save time, you save a great deal in terms of cost as well, in comparison to taxi and other ride-sharing services. With this in mind, passengers want a better idea of rates or the price they will pay for their ride, prior to booking service with a driver. These are a few factors used to determine the cost of your ride and an easy way to estimate how much you will pay for an Uber driver, before reserving your ride on your smartphone.