This only happens in a subset of markets [2] where legally the driver fare is “coupled” to rider fare. In other markets drivers always get time-distance fare.

This only happens in a subset of markets [2] where legally the driver fare is “coupled” to rider fare. In other markets drivers always get time-distance fare. Ironically journalists will also say that upfront fare is too high and rips off riders [1]. And in these coupled markets there is a selection bias since no driver is going to complain if the upfront fare predicted traffic (or on average accounts for traffic) but there was none. My impression is that Uber is at a first approximation indifferent to whether the price is high or low; it earns the same commission off one trip for $100 as ten trips for $10. If Uber sets the price too low then no drivers will drive. If it sets too high no riders will take trips. It’s incentivized to maximize the dollars flowing through the system, which Econ 101 implies* is whatever the market clearing price is. There might be knock on effects for higher volume such that 10x$10 is better than 1x$100 but those are difficult to measure. [1]: https://www.google.com/amp/s/qz.com/974892/ubers-upfront-pricing-is-helping-it-overcharge-passengers-on-uberx-and-other-private-rides/amp/ https://www.google.com/amp/s/qz.com/974892/ubers-upfront-pri... [2]: https://www.google.com/amp/amp.timeinc.net/fortune/2017/05/20/uber-new-pricing-angry-drivers https://www.google.com/amp/amp.timeinc.net/fortune/2017/05/2...