Have you ever wondered how Uber calculates their fares? Maybe you have questioned why sometimes after a really short ride you are still charged as much as some of the longer trips you’ve taken? There are a few key components that go into calculating and estimating an Uber Fare, and we are here to explain each factor, as well as how they work together to create the Uber pricing formula.
How is My Uber Fare Calculated?
Your Uber fare is first based on 4 main criteria:
- Base (or initial) fare – A flat fee charged at the beginning of every ride
- Cost per minute – How much you are charged for each minute you are inside the ride
- Cost per mile – How much you are charged for each mile of the ride
- Booking Fee (Formerly ‘Safe Rides Fee’) – A flat fee to cover Uber’s ‘operating costs’ (Not included for Uber’s more luxury services like UberBlack or UberSUV)
Here’s how Uber uses the 4 main criteria above to calculate your fare:
Base Fare + (Cost per minute * time in ride) + (Cost per mile * ride distance) + Booking Fee = Your Fare
Other Key Factors in Determining Your Uber Fare
There are a few more factors that will play into your Uber Fare that are not included in the 4 main criteria.
Tolls and Fees: Uber requires all passengers to pay for any tunnel, bridge, or toll charges that are incurred during the course of the ride. These charges will be added to your fare total at the end of your trip.
Uber Surge Pricing: Uber surge pricing has a scary connotation but it is actually a fairly simple and, at times, positive principal. Uber surge pricing is when Uber rates 
increase to guarantee reliability and availability of cars. When the demand for rides cannot be met by the number of current drivers on the road, prices will increase. This encourages more drivers to turn on their app and hit the road since they will make more money than usual. Uber will always notify you in your app before you request a ride if there is surge pricing so you will never be caught off guard. Surge pricing helps to guarantee that there is always a ride available, if you are willing to pay the price!
Your Uber fare, with surge pricing, is calculated by multiplying your total fare (before tolls) by the surge price multiplier. For instance if the surge amount is at 2x your total fare will be doubled, if the surge amount is 3x your total fare will be tripled.
Surge Pricing Example: If your total fare at the end of your trip is $12 and there was a 2x surge in effect, your new total would be $24. Then Uber would add on any incurred tolls.
For more information on Uber Surge Pricing visit this help article here.
Uber Minimum Fare: To encourage drivers to pick up short rides that will not yield much profit, Uber sets a minimum fare for each service. This helps to fairly reimburse drivers for short rides. If the combination of the above criteria results in your fare being lower than the minimum fare, you will be charged the minimum fare price instead. The minimum fare amount changes from city to city.
Minimum Fare Example: It is raining and you decide to take an UberX only two blocks down the street to stay dry. After your trip ends and you add up the four different variables (as shown above), you calculate that your fare would only be $3.24. But in your area, the minimum fare for UberX is $5, so you will be charged $5 instead of $3.24.
Uber Fare Prices Vary Based on City & Car Service
The four main criteria factors that we outlined in section 1 (base fare, cost per minute, cost per mile, and booking fee) all vary from city-to-city, and across the many Uber services (UberX, UberXL, UberSUV, UberBlack, etc). To learn more about the differences between each Uber car service visit this help page here.
Now that you understand all the factors that go into your Uber Fare and how time-consuming it would be to calculate it on your iPhone calculator, try UberFareFinder’s Fare Calculator! UberFareFinder will calculate your Uber fare using all of these factors with one easy click of a button. UberFareFinder will even include real-time surge pricing estimates and allows you to book your Uber car straight through the site!
Happy Travels!
