Uber testing new pricing, using data to decide cost

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

SAN FRANCISCO — Uber is testing a new pricing system based on the route traveled.

Instead of calculating fares based on factors such as mileage and time, the new system charges based on what it thinks the customer is willing to pay based on “route-based pricing.”

Some have argued the change will charge certain people more than others, but Uber’s head of product denies the new pricing targets only wealthy people.

The company said that by using route-specific pricing, it should lead to lower prices.

Uber said the fares are based on the demand for the route and not specific neighborhoods or history of the rider requesting the trip.

The company won’t say which specific routes will see the higher fares.

The test is happening in cities with UberPOOL carpooling service, which includes Denver.