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The cost charged wasn't for the technology. Taxis and cabs are regulated with fixed time/mileage rates. Uber isn't. It can charged dynamic pricing. The work ar
by jy1 5y ago
The cost charged wasn't for the technology.
Taxis and cabs are regulated with fixed time/mileage rates. Uber isn't. It can charged dynamic pricing. The work around for Taxi apps is to shift this dynamic price into the "technology fee", as a workaround.
The user isn't paying $15 for algorithm. It's paying $15 because the ride was ordered during a high-demand time, and the app is hiding that as a dynamically priced "technology fee" to workaround regulations of fixed time/mileage rates.
- parisk 5y agoThanks for your comment. I just tool their word for it :). That's interesting though. If you can share a link validating that, I can update the article to better represent reality.
- jy1 5y agoYou can see in the receipt how it says "high demand" next to technology fee :). I don't have an article, but I used to work for a major rideshare co, hence the industry knowledge.