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Uber trialling fines for late passengers

Michelle Avenant
By Michelle Avenant, portals journalist.
Johannesburg, 03 May 2016
Uber is trialling penalty fees for late passengers in selected US cities.
Uber is trialling penalty fees for late passengers in selected US cities.

Uber has found a new source of income in charging late passengers extra for their tardiness.

The ride-hailing behemoth is trialling penalty fees for late passengers in four US cities. If a passenger in New York City, New Jersey, Dallas, or Phoenix takes more than two minutes to get into their Uber after it has arrived to fetch them, they will now be charged the city's per-minute rate for the time the driver spends waiting for them.

"When a driver arrives promptly, we think it's only fair that they're compensated for their time," Uber said in a blog post titled "Making the Most of Your Time", which states "Uber works better when drivers are driving more and waiting less".

"When riders and drivers are respectful of each other's time, the whole system runs more smoothly and the Uber experience improves for everyone," adds an Uber spokesperson.

In many US cities, Uber drivers currently have the option of cancelling a ride, and receiving a cancellation fee, if the passenger takes more than five minutes to get into the car after the driver arrives to fetch them. In New York, this cancellation fee is $10, of which the driver receives 80% and Uber the other 20%, according to The Guardian.

Cancel more quickly

Uber's late-fee trials also include shrinking passengers' ride-cancellation grace period from five minutes to two minutes, meaning passengers in trial cities must cancel unwanted rides more promptly to avoid incurring a cancellation fee, which is generally between $5 and $10 in the US.

In South Africa, ride cancellation fees vary from R20 to R100, depending on the city and the type of vehicle ordered.

Uber says "if [the trialled fees] improve the experience for riders and drivers, we'll look at rolling them out more broadly", although there are no plans to expand the trail beyond the selected cities at this time.

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