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What is the difference between Uber's Booking Fee and Service Fee?
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The Guru Take
Both fees collected by Uber. Booking is the flatrate. Service is the variable portion.
Booking Fees and Services Fees are fees collected by Uber from the passengers.
- Booking Fee is the flat-rate fee that’s collected once for each ride.
- Service Fee is the variable portion of the fare that is collected to cover Uber’s commissions, tolls, airport fees, taxes and surcharges.
One way to look at this is this:
Full Fare = Driver's Earning + Booking Fee (Uber) + Service Fee (Uber)
The Service Fee is more for the drivers to have a better understanading of their own earnings and how much is taken by Uber. It is a fee that is relatively a new concept as part of their “180 Days of Change” initiative.
I have included the screenshot of my Uber Driver App.
Below is a link to more information on different fees Uber charges. All of these fees listed are a part of the Service Fee except the Booking Fee.
Uber Surcharges and Fees: A Complete List
Comments
Looking at your receipt. Uber took $4.08 of your $12.40 trip? (Without tip, that's 11.40.) That's 36%!!!!!!
For shorter trips, yes, the portion Uber takes becomes much larger by percentage, primarily due to the flatrate booking fee.
This is the reason why Uber drivers prefer longer rides.
So as a rider, I couldn't care less about this.
I believe that is correct.
According to Uber:
"The booking fee helps cover our regulatory, safety, and operational costs, including insurance protection for you and your drivers on every trip. "
I always thought they were the same thing?! How many fees does Uber have?