Report reveals Uber charges riders more in wealthier areas
PALO ALTO, California -- Some Uber drivers said recent changes you might not have even noticed are overcharging you and shortchanging them.
One of those apparent changes involves charging passengers not just by distance, but by the kind of neighborhood they're in.
This is a new program that uses artificial intelligence, but many drivers are questioning Uber for not telling them about it.
Bloomberg reported that Uber has been testing this program in certain cities since late last year and it's being called route-based pricing.
Basically, Uber uses artificial intelligence to figure out how much to charge customers based on what it predicts they're willing to pay. For example according to Bloomberg, someone coming from a wealthy neighborhood to another high-income area might be asked to pay more for their ride than another person heading to a poorer part of town, even if demand, traffic and distance are the same.
The problem is drivers were never told the passenger was paying more, while Uber allegedly pocketed the difference.
One Uber driver told the San Francisco Examiner, Uber has been cutting prices over the past several years so more people will take Uber, lowering driver's profits.
Uber said it will now tell drivers how much their passengers are paying.
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