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Uber v.s. Taxi: Which Saves You More? | The Daily Reckoning

Other Costs to Consider
Tipping – another major difference between ride sharing apps and taxis is tipping etiquette. Most taxi riders tip their drivers around 20 percent. Uber riders rarely tip at all since tipping has only recently become a feature within the apps.

Surge pricing – another difference between ride-hailing apps and taxi cabs is surge pricing. Both Uber and Lyft charge higher fares when there’s higher than normal demand. Think New Year’s Eve or on the fourth of July.

Surge pricing varies by city but you can see increases of 1.5-1.8x the regular rate. So, on a $10 trip, you can expect to pay anywhere from $15-$18. One customer was actually charged $14,000 for a 20-minute Uber ride due to surge pricing. The charges were dropped but it’s a reminder to always check the estimated fares, especially when it’s surge pricing.

A few ways to avoid paying surge pricing: wait until it’s over. Sometimes, surge pricing only lasts a few minutes. Walk outside the surge pricing location. Sometimes even walking a few blocks will put you outside of the surge pricing map.

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Uber v.s. Taxi: Which Saves You More? – The Daily Reckoning.

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