Uber trials penalty fees for late passengers

https://www.theguardian.com/technology/2016/apr/29/uber-penalty-fees-late-passengers

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Uber is tired of your lateness. In an effort to deter riders from ordering cars while still drying their hair, finishing an email or munching a slice of toast, the company is allowing drivers to start charging passengers after waiting for two minutes, or to leave altogether if the rider is not prompt, with the rider incurring a fee.

Uber is also reducing the time allowed for riders to cancel an ordered car without being charged, from five minutes to two minutes.

The changes are being trialled in New York, New Jersey, Dallas and Phoenix, but are not yet being rolled out on a permanent basis.

In a blog post titled “Making the Most of Your Time”, which sounds a bit like it could be a New York Times self-help bestseller, Uber said: “While we encourage riders to only request a ride when they’re ready, we understand that sometimes they are running a little behind. In these cases drivers will be compensated for the extra minutes they need.”

As TechCrunch points out, however, Uber’s estimated arrival times are often inaccurate. Sometimes cars arrive a lot earlier than the app anticipates, but more frequently cars take much longer to arrive than first specified, with the app showing cars travelling in the opposite direction from the destination point.

At present, riders are given a five-minute grace period to cancel without being charged. This will now be reduced to two minutes to avoid inconveniencing drivers who are already en route to a pick up point.

Drivers can also cancel a trip if a rider takes more than five minutes to get in the car. In this instance, drivers in some cities receive a cancellation fee, of which Uber takes a cut (around 20%). In New York, drivers receive $10 for cancelling on a late punter, of which they pocket 80% after Uber takes its share.

However, the cancellation fee is not consistent across all cities. Drivers in Dallas, a city in the new trial, were outraged last December when Uber removed their $5 cancellation fees.

The new trial policy means drivers can start charging by the minute after two minutes of waiting for a passenger, and can cancel anytime if the rider is not ready – rather than waiting for five minutes to pick up a cancellation fee.

The change comes after growing speculation that tipping Uber drivers could become commonplace in response to class action challenges in California and Massachusetts.

However, Uber clarified that, while the company did not frown upon riders tipping, it did not encourage it, and would not be building an in-app option to tip drivers.

“Riders tell us that one of the things they like most about Uber is that it’s hassle-free,” said Uber’s New York general manager . “And that’s how we intend to keep it.”

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