SINGAPORE – Uber’s new upfront pricing for its ride-hailing UberX service has come under fire from some commuters who complained that their fares have increased.
Uber, which introduced the upfront pricing on Aug 31, claimed it would ensure “no math and no surprises” for commuters.
“Because we know from UberPool that upfront fares is clearer and simpler for riders…when you book a plane ticket or hotel room you know the price before you buy it,” Uber said on its website. “We see this as the right approach for Uber.”
Ride-sharing service UberPool, which was launched in Singapore on July 1, allows commuters to share an Uber ride so they can save up to 25 per cent off the fare of a conventional UberX ride.
UberPool users get their fares displayed upfront on the app. UberX rides – before upfront pricing kicked in – showed only an estimate.
The move, however, appeared to be less than popular with some commuters who complained about the new policy on Uber Singapore’s Facebook page.
Facebook user Jason Ooi wrote: “Did Uber just revise the ride fare in Singapore? A ride that normally costs me $6 now becomes $8 to $13 (I checked the fares the whole day).
“It used to show notification i.e. price surge or higher price due to demand but not now anymore.”
Another user, Anoop Rachamalla, claimed that the minimum fare for a Uber ride to work in the morning had more than doubled from $12 to $29.
He wrote: “So there is no more surge shown but you charge almost three times the regular fare?”
In the FAQ section of its announcement on upfront pricing, Uber said prices are determined by considering a variety of factors such as traffic, ERP charges, the length of the journey and demand.
“We’re able to use past data to estimate the likely cost of the trip, and can present that price to a rider before they request. With upfront prices you cannot book a car without approving the cost beforehand,” it explained.
Dynamic or surge pricing, however, still exists, Uber clarified.
“Since the rider is given a price up front, the rider actually has more information about the cost. For example saying a trip will cost $10 provides more precise info to the rider than saying the trip fare is surging by 1.5x.”
Based on tests in other cities, commuters request more trips if they are offered an upfront price, said Uber.
It added that upfront fares are generally completely inclusive. It will fall back to time and distance rates only when commuters make “significant changes” to their trip route.
The Straits Times has contacted Uber for comment. Uber has indicated it will respond to queries by Tuesday.
This article was first published on September 5, 2016.
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