Harry here. One of our goals has always been to bring more transparency to the rideshare industry. Today, senior RSG contributor Christian Perea takes a look at Uber’s new Upfront pricing system.
Over the past few weeks, we have been receiving emails that Uber’s “Upfront” fares have been overcharging passengers without paying drivers the difference. In some instances, passengers are getting charged double the actual time and distance for a normal ride, yet drivers are receiving only about half of the amount the passenger pays while Uber is pocketing the difference.
Update 11/29/2016: Lyft in no surprise, has announced that they will launch their own version of upfront pricing as well.
If you’re not familiar with the move to upfront fares, Uber detailed it in a blog post a few months ago. Basically, passengers in major markets are now required to enter a destination, and the fare they’re quoted is a guaranteed price for that ride. On surge rides, there is small text that says ‘fares are increased due to higher demand’ instead of passengers having to type in the surge amount like they used to.
Examples of Uber “Skimming Off The Top” of Upfront Fares
Initially, I thought most of these rides were a result of rare occurrences with the Upfront pricing algorithm, so I decided to test it out for myself. It turned out that on the first ride I took, I found a small discrepancy.
I have included four of the most obvious examples below. Feel free to contribute with your screenshots by e-mailing us or leaving a comment below.