Uber Will Start Charging More For Some Rides Because It Was Losing Money

Travis Kalanick Uber Limo DriverMike Nudelman/Business InsiderUber CEO Travis Kalanick

UberX, the low-cost alternative to the startup’s black car service, is about to get more expensive.

UberX is now making passengers pay a $US1 “Safe Rides Fee.” It will also reinstate its 20% commission for its UberX drivers because the company had been losing money, GeekWire reports.

The new fee will contribute to Uber’s costs related to “background checks, ongoing safety monitoring, education, insurance and safety features.”

Over the past few months, UberX only took 5% from its drivers, but it was losing money on each trip. So starting April 23, Uber will again start taking 20% commission from its UberX drivers.

Earlier this month, Uber also jacked up the cost of its black car service in New York City.

Here’s the full blog post:

From the beginning, we’ve always been committed to connecting you with the safest rides on the road. Starting this week, we’ll demonstrate that continued commitment to safety with a dedicated $US1 Safe Rides Fee added to uberX fares in United States cities with uberX ridesharing. For complete pricing transparency, you’ll see this as a separate line item on every uberX receipt.

This fee supports the increased costs associated with our continued efforts to ensure the safest platform for Uber riders and drivers. Those include an industry-leading background check process, regular motor vehicle checks, driver safety education, current and future development of safety features in the app, and insurance.

The whole Uber team is committed to continue innovating, refining, and working diligently to ensure Uber is always the safest experience on the road. If you have feedback, questions, or concerns, please let us know at [email protected]

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

sai-us uber