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How are the cost per minute and base fare calculated? What does it contain a ...

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louisr12
15 Rider
 Posted 1 year, 9 months ago

How are the cost per minute and base fare calculated? What does it contain and how do you calculate it?

The Guru Take

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    louisr12
    OP 15 Rider
     1 year ago

    lilly,

    Thanks for the provided article. The thing is I know what contains an uber ride as it comes to fares. I am wondering how they calculate how much the time per minute is or the base fare. As it comes to cost per mile it includes operational costs and depreciation divided by the estimated miles driven. How do they do that for the base fare or cost per minute? What are the cost components here?

    Show Hide  3 Replies
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      eForceX77
      110
       1 year ago

      Uber just calculates and set the fares on whatever the drivers are willing to do their for job for.  It's part capitalism.  They don't care how it breaks down.

      They do take a "booking fee", what they used to call the "safety fee".  That is applied on everything, which supposely covers for operational fees like driver background check, support they provide the rider/driver, etc.  Then there's the commissions of like 25% which is assessed on an overall trip.

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      kias_revenge
      133 Rider
       1 year ago

      It's a good question. But I don't think they put that much calculation into the rates. I think it is more market driven and dependent on what the competition is doing. They are losing money after all.

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      RedANT
      1075 Rider Driver
       1 year ago

      I believe that calculation can vary depending on the laws and regulations in the country that you're in.  Your best bet is to contact the rideshare company in your area directly and see if they'll give the information to you.