Hacker News new | ask | show | jobs
by jy1 1584 days 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.

1 comments

Thanks 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.
You 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.