Uber is introducing “Upfront Pricing”, in a bid to move away from Surge pricing. Users will know how much a ride will cost beforehand. This is similar to what UberPool offers right now, and riders will need to enter the destination before taking a ride, to generate the estimated fare.
Uber wrote on its blog, “Upfront fares are calculated using the expected time and distance of the trip and local traffic, as well as how many riders and nearby drivers are using Uber at that moment. And when fares go up due to increased demand, instead of surge lightning bolts and pop-up screens, riders are given the actual fare before they request their ride. There’s no complicated math and no surprises: passengers can just sit back and enjoy the ride.”
Currently, Upfront Pricing is available for UberX rides in cities across the US and select cities in India as well. Uber claims that “hundreds and thousands” of riders have experienced Upfront Fares during the rollout. Further, it added that going forward, Upfront Pricing will be available to many more cities. This won’t mean that Uber is getting rid of Surge pricing as a whole, it's just that riders will be aware beforehand on how much they will be paying for the ride.
Recently, Uber slashed UberX and UberGo prices in 10 non-metro cities of India. Google Maps also started showing Uber fares directly from the app.