I am not new to Uber, but I noticed something I don't understand. How much is the cancellation fee supposed to be? I thought it was $5.00 for UberX and $10.00 for UberBlack, but looking at my statement, I am seeing different figures.
How much is the cancellation fee supposed to be? I thought it was supposed to be a flat fee?
The Guru Take
The maximum for cancellation fees are $5.00 and $10.00. Rate/distance used otherwise. Also don't forget long pick fee.
UberX's $5.00 and UberBlack's $10.00 cancellation fees are supposed to be the "maximum amount" they can charge. The cancellation fees are supposed to compensate the driver for lost time and opportunity, and by default, they are calculated by time and duration the Uber driver has incurred to perform the pickup.
With that said, you may seen the fees of $5.00 regularly for a few reasons. By the time you cancel, it has at least been 5 minutes (the threshold for the cancellation fees to be applied), and in most cities, that will automatically equated to $5.00. The "no show fees" also falls into this category.
You may also want to keep in mind that Uber started to charge long pickup fees that can be assessed if the driver is taking extra time to come pick you up.
https://help.uber.com/h/56270015-1d1d-4c08-a460-3b94a090de23
https://help.uber.com/h/24e75a3b-cf44-44e4-abae-8c2dce3b07a3
Comments
Yeah, it's on my app that the cancellation in Philly is $5 for Philly. I think it's pretty much flat rate, as driving 5 miles to get to you would basically be at least $5, as per minute and per mile fees are higher.
This is actually a crappy reminder for us drivers, that we are still losing money even if we get the cancellation fees. We just drove for much less than what we would have made actually driving a passenger.
Don't despair too much though. That's the part of the trip you wouldn't have made any money anyways. So imagine it as getting a ride that only lasted 5 minutes worth, after pickup.
If you order a ride and I drive 5 minutes to your destination, it may be $5.
If you order a ride and I drive 20 miles in rush hour traffic and burn $5 in gas getting to you, I've wasted my time AND had additional costs, hence teh additional fee.
If you order a ride, go through with it or cancel before it costs drivers REAL MONEY.
For some reason I think the threshold on Uber cancellation time was reduced to within 2 min of request. Where we get $3.75 as Uber taxes fee on that. Lyft cancellations we get $5.00 and $10.00 if you cancel a prescheduled ride