UBER is currently making changes to its pricing system and it could be bad news for those living in certain suburbs.
Using machine-learning techniques, Uber was able to discover customers would happily pay a fixed-premium to travel some high-demand routes — basing the new pricing from this data.
While this might sound like the service is separating its customers based on income, Uber’s head of product Daniel Graf said this wasn’t the case.
Get ready for Uber “route pricing model” — a new fixed rate fare system for its UberX service that charges customers based on what it predicts they would be willing to pay.
Mr Graf said while customers can expect to pay more for using fixed rate route-pricing, drivers will not receive any extra money — they will continue to be paid based on distance, applicable surge pricing and incentives…. [Read more]