Did you know that Uber now charges you according to where you are going? Before now, Uber prices were based on factors like distance, travel time and time of day. However, Uber has now introduced route-based pricing, which means that they now charge customers more if they are going to routes with higher demands.
The company plans to achieve this using Ai and machine learning techniques, which will predict what a customer is willing to pay. This will lead to the company charging customers higher than usual. For example, a rider traveling to a poorer section of town from a rich section will pay more than a rider that comes from the poorer section. Uber will show this fare to the rider before they take the cab.
However, the increased fare will not entirely reach the drivers. Thus, the drivers will know how much riders will pay upfront, but Uber will not break down the fare to show their share. Meanwhile, drivers have complained about the costs of rides in recent times. This development is expected to take care of that issue. For now, though, the route-based pricing system is set to take effect in 14 cities across the US.