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Uber puts a larger fare if it knows you will pay | Tech Juice

The surge pricing on the popular ride-hailing service is not as simple as some people might have thought.

According to a new report from Forbes, Uber, the US-based ride-sharing service, charges a larger fare if, through machine learning and artificial intelligence, it gets to know that the users would be willing to pay the increased amount. Yes, the computation of dynamic pricing gauges the user’s willingness to pay a certain amount; the amount is then pushed as surge/normal pricing.

The decision-making takes into account different factors like your location, traffic patterns in your locality, what time of the day it is, weather and the customer’s history and even the global news events to determine the most suitable fare to show, which the user would be willing to pay. Not to mention, Uber’s dynamic pricing also takes into account the number of drivers in the vicinity along with the number of users requesting the ride, to price-tag the ride as per the demand-supply rule.

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Uber puts a larger fare if it knows you will pay.