Uber is quietly testing flat fares that make it almost as cheap as a bus

Thomson Reuters

Uber is experimenting with new pricing that lets passengers prepurchase rides in its cars at a flat, preset price.

The way Uber's pricing works now depends on time and distance traveled plus surge pricing, a multiple added to the ride during high-demand. It's a system that's detested because a $5 ride can easily become a $25 trip if you're not careful.

Starting in September, Uber is saying good-bye to surge pricing by quietly letting a small group of riders pay a different way by charging only a flat fee per ride.

"We're always thinking about ways to make Uber an affordable, everyday option, and this is a small beta we're running as part of that effort," an Uber representative told Business Insider.

Business Insider stumbled across the test after only getting an email to try out the beta in San Francisco.

Thomson ReutersAccording to the invite, in San Francisco I can choose from a package of 20 trips for $20 or 40 trips for $30 for September.

After I pay for the package, I have either 20 or 30 rides to use at a flat-fare price. If I go above the number of prequalified rides — or above the $20 ride limit — then I start paying out of pocket.

In San Francisco, the flat fare is $2 for an UberPool ride, its shared-ride option, or $7 for an UberX, a private car to myself.

If someone takes all 20 rides on UberPool, then they'll be paying a total of $60 for 20 rides, or only $3 a piece. In San Francisco, that's only $0.75 more than the bus and way less than the $5 to $8 I typically pay for an UberPool ride.

While Uber hasn't publicly commented on the success of other experiments like this one, the fact that it's repeating it in larger markets could signal that it could become more widespread.

In July, Uber tested a similar $0.01 "Pool Pass" in Boston that had the same upfront cost structure and one-penny rides after that. While it was limited to one month in one location, the September tests are spread across six metros, including Miami, San Diego, Boston, Seattle, and Washington, DC.

In DC, for example, UberPool flat-fare rides will be as cheap as $1. Other cities will be as high as $3. For solo UberX, the testing ranges in the six locations are between $5 and $9.

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