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Comment by kirykl | Hacker News Reader

getting charged exactly for what you use is great

I as a user would far rather know exactly what I'm getting charged ahead of time, on basically everything, even if it were more. I'm 100% certain most people would.

I would rather be charged for what I'm using instead of an amount that's fudged to amortize unexpected incidental costs over all users. Maybe some kind of additional insurance against extra costs might be a feature that some users would use, but I prefer to self-insure than help others defray costs.

The upfront pricing was just an estimate of the total based on previous data. I much prefer it, because it incentivizes the driver to take the most efficient route, since they get paid based on arrival and not the way they go.

In the pay as you go system, you are at the mercy of the driver, and they are actually incentivized to take a longer route.

I've definitely had drivers take longer routes under the pay as you go system. I would complain to Uber and they would refund the money, but it was still a hassle to complain.

Interestingly, in places where Uber still has up front pricing for riders, drivers are paid on time and distance. Uber is taking the risk of the estimate being too high or too low.

no, it's absolutely not. There is obvious incentive misalignment here: rider want to get to the destination as fast as cheap and possible, and the driver wants to earn as much and as little work as possible. Here is taking the longer route

That’s how taxis stole from customers for decades, taking the long way there.

The driver controls "what you use" based on the route and time taken to get you to the destination.

Upfront pricing is still calculated based on usage, but it sets a fair amount without giving up control and the potential for overages.

Right, and removing upfront pricing removes that.

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