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Uber’s model of charging ‘surge’ pricing during peak times is no stranger to controversy, but soon the rideshare giant will bring more clarity to the way it charges customers for rides. Instead of notifying the customer that their ride will be surging at, for example, 1.7x the normal fare, the app will now show you the exact price that you’ll pay for your trip before you get in the car. Uber claims that its research has shown that riders are more likely to ride with Uber again if they’re aware of the total cost of a ride before it begins (If you don’t already have an Uber account, you can sign up now to receive a free ride [up to $15] from TPG.)

This doesn’t fundamentally change Uber’s pricing scheme, as the cost of rides will still fluctuate based on demand. However, it’s easier for customers because it takes away a lot of the guesswork that’s involved with the current surge pricing model. The change will also include the ability for riders to change their destination in the middle of a ride and then get notified immediately within the app of an updated price.

The new pricing feature is already available for select customers in major markets in the US such as New York, New Jersey, Miami and Seattle as well as Indian cities like Mumbai and Hyderabad. Uber says that the feature will be rolling out across all markets in the coming months. Keep in mind that when using Uber, there are several credit cards that can help you maximize the money you spend on each ride.

What do you think about Uber’s more transparent pricing?

H/T: TechCrunch

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