Uber is changing the way it shows you fares across The Pond. This week, the ride-hailing service announced that it will be introducing upfront pricing — or fixed pricing — in the U.K.
In the past, when you opened the Uber app to order a ride, you would be given a range of prices. Now, with the introduction of upfront pricing, both the rider and the driver will know the exact cost of their trip before they confirm.
Uber says that it bases the fixed price based on the best-available route between the rider’s pickup and dropoff points. It uses the expected duration and distance of the trip to come up with the exact figure, while taking into account anticipated traffic patterns and known road closures. Costs for tolls and additional surcharges will also be accounted for in the upfront pricing figure. When demand is high, Uber says it’ll account for that with “dynamic pricing” — a new take on surge pricing.
There are, however, some situations when the fixed price may change. More specifically, there are four scenarios when the fixed, upfront price may change:
- If the rider adds or removes a stop in their journey;
- If the final destination is more than one mile away from the originally requested destination;
- If a detour is taken and the trip is further (40% and 0.5 miles further) and slower (20% and two minutes slower) than originally estimated; or
- If the trip is at least 40% and 10 minutes slower in duration.
In other words, if you hit traffic and your trip has been extended by a significant amount of time, the fixed cost will likely increase. Additionally, if you change your trip to add a stop, the fixed price will change.
The new upfront pricing model is being rolled out across the U.K.
For those looking for peace of mind before booking an Uber when touring around, the upfront pricing model is a positive change for the ride-hailing service.
Earlier this week, Uber won its long-lasting legal battle in London wherein a court determined that it was a “fit and proper” operator, “despite historical failings”. As such, Uber’s been granted a license to continue operating in the capital.