Most rideshare drivers know that accepting rides a long way away from them is a bad idea. Why? If Uber only pays you so much money per ride, it’s more lucrative for you to take rides that are close.
Uber, however, is catching on to the driver strategy, and they’re taking steps to make it worth your while to make that longer drive.
New Fee Structure
Uber is charging customers an extra fee for rides that require drivers to commute more than around eight minutes, per a company press release.
Different areas have different “thresholds” for what is considered a long drive. You can find your Long Pickup Threshold by going to the Fares section of your dashboard.
Maximum payment for a Long Drive Fare is $20, Uber said. The changes will apply to certain uberX and POOL trips.
The fee will be calculated at a rate of $0.9075 per mile and $0.165 per minute of estimated drive time. Uber will charge customers based on an estimate that the app makes via an algorithm. This algorithm takes into account distance and other factors in order to predict how much extra time it will take the driver to reach the passenger.
Although some are concerned this will decrease the customer base, Uber hopes it will actually fill a specific need. Aaron Schildkrout, head of driver product at Uber, said it can be difficult for riders in suburban areas to get a ride. It doesn’t tend to be lucrative for drivers to go out there, but there’s still a customer base. Uber hopes customers will be willing to pay a little bit more in order to get a ride where they need it, when they need it.
New Cancellation and Wait Policy
Uber also altered its cancellation policy. Drivers will now receive payment for time and distance even if they arrive and the rider cancels. This new feature was piloted in New York and Phoenix earlier this year, but is now rolling out across the board. Drivers can also earn Long Drive payment on cancellations, meaning longer drives will be more lucrative even if the customer cancels by the time you arrive.
Uber also announced plans to increase fees for wait times. Customers will now pay more if the driver has to wait more than two minutes.
180 Days of Change
These policy changes have come about as a result of Uber’s 180 Days of Change program. This program has been running for several months now. Perhaps the most notable change to date was the offering of in-app tipping. This feature was highly requested by users of the app. However, the change also addressed a shortcoming between Uber and its main competitor, Lyft. Other previously rolled out changes include in-app messaging and a more detailed feedback system.
Another change rolling out to help driver’s is the incorporation of tolls into the customer’s fare. Uber drivers have been stuck paying tolls out of their pocket to this point. The new feature will pass along that charge to the customer rather than pinning it on the driver.
