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posted by cmn32480 on Sunday May 21 2017, @12:07PM   Printer-friendly
from the I-am-willing-to-pay-$0 dept.

Uber drivers have been complaining that the gap between the fare a rider pays and what the driver receives is getting wider. After months of unsatisfying answers, Uber Technologies Inc. is providing an explanation: It's charging some passengers more because it needs the extra cash.

The company detailed for the first time in an interview with Bloomberg a new pricing system that's been in testing for months in certain cities. On Friday, Uber acknowledged to drivers the discrepancy between their compensation and what riders pay. The new fare system is called "route-based pricing," and it charges customers based on what it predicts they're willing to pay. It's a break from the past, when Uber calculated fares using a combination of mileage, time and multipliers based on geographic demand.

Daniel Graf, Uber's head of product, said the company applies machine-learning techniques to estimate how much groups of customers are willing to shell out for a ride. Uber calculates riders' propensity for paying a higher price for a particular route at a certain time of day. For instance, someone traveling from a wealthy neighborhood to another tony spot might be asked to pay more than another person heading to a poorer part of town, even if demand, traffic and distance are the same.

Source: Bloomberg


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  • (Score: 1, Redundant) by Gaaark on Sunday May 21 2017, @04:08PM

    by Gaaark (41) on Sunday May 21 2017, @04:08PM (#513044) Journal

    Or the stupid people who win big on the lottery and a year later the money is gone and they are broke again.

    Damn, just give the money to me: i'll put it to good use.... vodka, blow and hookers. And a new linux box.
    That's all i need: vodka, blow, hookers, and a new linux box.

    And my thermos.

    That's all: vodka, blow, hookers, a new linux box and my thermos.

    Come here, shithead...

    --
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