Uber has certainly brought transformation in the local transportation system across the globe. With presence in many countries across the world Uber is definitely a service worth opting for. You book a cab to a certain destination and it instantly finds you a nearby cab to drop you at your destination at the earliest. Users can also get an estimate of their ride to know what they have to pay when they reach their destination. But have you though how Uber calculate fare for your ride. Not many people give this thing a thought so today we will be discussing about how Uber charges you for a ride to a certain destination. 

The first thing to note is that Uber doesn’t have a standard fee policy because it has presence in many countries (633 cities worldwide) and it has to abide by the specific country’s transportation laws and regulations. So if you think that Uber charges you similarly across the globe then drop this thought. The fares are as per the city you reside in and the surge area. 

Now let’s move on to how Uber fare estimate process gives you pre-proposed fare estimation so that you can know what you have to pay after reaching your destination. The estimation process of Uber is based on a basic fare breakdown and some additions. Here is a complete breakdown of Uber fare estimation process for you to know how you are been charged:  

Base Fare: This is the basic fee or flat fee that Uber charges you for its service. This flat fee varies as per the category of the car you opt for like SUV, UberX, Uber Black or any other category the App displays as per the city you reside in. 

Cost per Minute: This is a more time bound system that Uber follows. In this, Uber charges you for every minute the moment you sit in the cab. The general factors that Uber takes into account are traffic, road maintenance work that cause the ride to divert and other unavoidable factors that can delay the ride than expected.

Cost per Mile: Just like the cost per minute charges the cost per mile charges are based on the miles the cab covers till you reach the destination. Generally the driver takes the fastest route but due to traffic and other unavoidable factors they sometimes opt for a different route. But Uber charges you for the shortest distance by its fare estimate process.  

Booking Fee: Just like any other booking service you opt for Uber also charges you for a booking. This is generally done to cover the operational costs. It is not included in all cab categories for instance Uber Black and SUV fares are excluded from booking fee.  

Surge Price: If you are in a crowded or heavily jam packed area then you have seen that Uber charges you more for the same distance you have travelled many times by paying one third of the fare. This is because surge price is one factor Uber takes into consideration when there is a lot of strain in the system. This is directly related with the supply and demand function. So due to surge price your fare may increase by as much as three times for a ride. 

Tipping: This is an optional thing where if you wish you can pay the driver for a good ride and good behavior. It is not mandatory. It is purely up to the passenger’s discretion. 

Now coming to the conclusion here is how the fare is calculated for each of your ride: Base Fare + ((Cost per minute x time of the ride) + (cost per mile x ride distance) x surge boost multiplier) + booking fee = Passengers Ride Fare


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