We know understanding how fares are calculated is an important part of driving with the Uber App, so we wanted to take the opportunity to better explain upfront fares and let you know about some improvements we are making.
- How upfront fares work
- Why we have upfront fares
- How upfront fares compare to those without upfront fares
- What you can do to help keep your fares accurate
- What we are doing to improve upfront fares
Upfront fares are based on the fare for the fastest route between the rider’s pickup and dropoff points as riders appreciate getting to their destination in the most efficient way.
The fare takes into account the expected duration of the trip, traffic patterns and distance, as well as surge when demand is high. When the trip goes through a toll, the toll is added to the final fare.
At the end of each trip, the amount you are paid is based on the upfront fare time, distance and surge components or the adjusted fare amount if the trip was significantly different.
- The pickup or dropoff location changes significantly – for example, if a rider wants to be dropped off somewhere other than than their original pickup or dropoff point.
- There’s an unexpected detour that makes the trip materially longer and slower – for example, if a rider wants to make an additional stop to pick up a friend during the trip and it takes you out of your way.
- The trip takes significantly longer than expected – for example, if there is unexpected heavy traffic and it was not factored into the original fare calculation.
- The rider adds or removes a stop while on trip.
If the trip is with UberPool, riders cannot change their destination so routes rarely change mid-trip. As a result, fares are rarely adjusted for UberPool trips.
Detours that are made to pick up additional riders who are requesting in app are accounted for in the service fee, which is varied for each trip segment. This is factored in when the upfront fare is calculated at the beginning of your trip, to make sure you receive similar earnings or better than an equivalent UberX trip.
For a detailed explanation of how UberPool works, click here
We don’t disclose the exact conditions when trips automatically adjust as we often review the conditions to ensure they’re optimised, and provide a fair experience for both driver-partners and riders.
We have already made some changes to improve how the automatic adjustments work for driver-partners and will continue to make further improvements in 2019.
Upfront fares help create certainty for riders, which leads to more trip requests through the Uber app. Instead of an estimated price range, an upfront fare provides an exact price to the rider before they request a trip.
We have seen that when riders are shown an exact fare like $15, rather than an estimated range like $12 – $20, they are more likely to request a ride, which can lead to more trip requests for you.
We broke each city down into smaller areas and looked at the earnings with upfront fares for trips starting in those areas compared to what would have been earned without upfront fares. 88% of upfront fares were within $2 of what would have been calculated without upfront fares. Over time, trips where you earn slightly less or slightly more will even out and your overall earnings should not be impacted by upfront fares.
- Take the most efficient route available. Taking the most efficient route can help ensure that your trip isn’t longer than the time and distance the fare is based on.
- If a rider wants to add an extra stop or change their destination during a trip, encourage them to update this in the app. This helps ensure the fare is calculated correctly. We’re also educating riders about these features being available in their rider app, however, a reminder from you during the trip may further assist.
- Continually reviewing the conditions when upfront fares automatically adjust to actual time and distance.
- Educating riders on how to use the multiple stops or update destination feature in the rider app. This means that fares can be calculated to better account for stops and changes to routes.
- Improving our maps, navigation and route calculation: We’ve heard a lot of feedback about the Uber navigation and maps, so we will be rolling out a new process to collect examples of bad routes and navigation that we can fix. This will be an ongoing process but something that will improve the Uber app over time.
Upfront fare FAQs
Check out our FAQ section below, and if you still have questions, you can contact support by tapping ‘Help’ in your Driver app, or visiting help.uber.com.
Posted by the Uber team
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