If you've ever found yourself in the situation of wanting a cab ride, but didn't want the hassle of calling one on the street, you may have turned to ride services like Uber. You may be wondering how much this service can generally cost. If you find yourself in that position, read on, because this article will break down the cost of using an Uber!
What Is Uber?
Uber is an American multinational transportation network company offering services like peer-peer ride-sharing, ride service hailing, food delivery, and a bicycle-sharing system. It was founded in March 2009, its founders being Travis Kalanick and Garrett Camp. The company is based in San Francisco and has operations in 63 countries and 785 metropolitan areas worldwide. It's a platform that can be accessed via its website and mobile apps.
The Average Cost of Uber Worldwide
Generally speaking, the average price of Uber services worldwide is about $25.77, and this cost depends on the distance covered. In most cities, the charge is calculated up front before the ride is confirmed. For example, the base rate is determined by the rate and distance of a trip, peak hours, and traffic patterns. Also, in the case where there are more riders than available drivers, prices tend to increase until demand is supplied.
Cost Breakdown of Uber
Uber has a minimum base rate, and after putting in your destination, it will calculate your total pay. Note that this is just an estimation, as the cost might shoot up depending on circumstances such as traffic, delays, etc.
If you cancel your trip 5 minutes later, in some countries such as the USA or Canada, you will be required to pay the base rate.
Factors Affecting the Cost of Uber Services
Uber costs can fluctuate due to several factors. For instance, trip cancellation will affect the cost. Although Uber services are cheaper and more convenient, trip cancellation by drivers can cause disruptions to riders, such as missed flights, meetings, etc.
Surge pricing or prime pricing might be the biggest annoyance for most customers. This method of pricing is mainly applied in free markets that involve fluctuations in prices as a result of supply and demand. For Uber drivers, it's an indicator of the availability of cars (supply) and how many people are requesting for a ride (demand). The pricing, in this case, depends on the intensity of demand, raising the prices on a certain percentage. Sometimes the costs can be doubled or tripled if they reach its peak times.
Conclusion
Uber prices are just average prices, and you could pay more or less than estimated depending on the distance covered and how convenient the trip is in terms of traffic and surge. If you want to avoid the burden of hailing a cab, or you just want a quick and convenient way to get home in privacy, an Uber ride could be right for you, and you'll likely pay around $20-$30.
