Uber Pricing, How Does it Work?

Upfront fares and Uber's pricing model

Uber currently enacts an Upfront Fares pricing model. This means that you enter in your starting and ending locations and Uber will give you a price before you ride. This price will include everything from the per mile fee to surge pricing if neccessary. It is basically a sneaky way for Uber to hide the breakdown of their fees.

Behind the upfront fare, Uber calculates their prices using the below formula.

• Base (or initial) fare – A flat fee charged at the beginning of every ride
• Cost per minute – How much you are charged for each minute you are inside the ride
• Cost per mile – How much you are charged for each mile of the ride
• Booking Fee (Formerly ‘Safe Rides Fee’) – A flat fee to cover Uber’s ‘operating costs’ (Not included for Uber’s more luxury services like UberBlack or UberSUV)

Base Fare + (Cost per minute * time in ride) + (Cost per mile * ride distance) + Booking Fee = Your Fare

Of course there are also tolls and other fees that may be associated with your ride. For a more complete breakdown of Uber's pricing view this article here.

lilly 1026

RideGuru market data & operations expert