Waiting for your Uber driver just became a way of saving money on travel.
Uber, the ridesharing company founded back in 2009, now offers a new feature which lets riders wait longer in exchange for cheaper fares. The new feature offers a new traveling experience. So Far, the option has been tested in Los Angeles and San Francisco.
Uber confirmed their new feature test to Quartz news:
“Affordability is a top reason riders choose shared rides, and we’re internally experimenting with a way to save money in exchange for a later pickup”
The formula for Uber’s pricing strategy is determined by 4 main criteria: base fare, cost per minute, cost per mile, and a booking fee. The formula also includes something called surge pricing which means higher fares. These fares can take effect during a random spike of requests, a natural disaster or during rush hour. In theory, if riders wait longer the probability of surge pricing decreases.
Uber has also started a new project that is like to give drivers a raise. The company will start paying drivers to switch to electric cars. Uber announced the yearlong pilot program with hopes to facilitate at least 5 million trips over the next 12 months.
“Unless we can be delivering a more efficient form of mobility, we won’t be providing a good solution that cities need. That’s why we’ve gone into bikes. That’s why we’re working with transit. That’s why we’re focused on electrification” said Adam Gromis, Uber’s hear of sustainability.
Uber has announced that the pilot will take place in 7 cities: Los Angeles, Montreal, Sacramento, San Diego, San Francisco, and Seattle. They have also made it clear that cash incentives for drivers that switch to electric vehicles will vary from city to city.
Uber is confident about their two new initiatives and hopes to increase their profitability in the process.
Featured Image via Flickr/ell brown