How can pricing serve riders and drivers?
Riders want affordable transportation, while drivers want dependable earnings. The Uber service fee is flexible so we can meet the needs of both. It funds our platform while enabling us to serve rider and driver needs.
What is the Uber service fee?
The service fee is the fee drivers pay Uber, and it varies from trip to trip. It’s the difference between what a rider pays and what a driver earns on a trip, excluding tips, tolls, fees (including the booking fee), driver promotions, taxes, and surcharges.
Why is the Uber service fee variable and not a fixed percentage?
Uber’s service fee varies to make upfront pricing work. Upfront pricing is based in part on the estimated time and distance of the trip, but drivers earn based on actual time and distance. The service fee is lower if the trip takes longer than predicted.
The same is true for Uber Pool if fewer riders than expected share the trip. Drivers still earn for the actual time and distance they drive, regardless of the rider price. To keep these commitments to riders and drivers, the Uber service fee varies from trip to trip.
Does Uber charge drivers a service fee on every trip?
No. If the rider payment is the same or less than the driver earnings, Uber does not receive a service fee. This may happen on an unmatched Uber Pool trip, if a trip takes much longer than predicted, or if riders receive a promotion. Consider the following Uber Pool scenarios:
Unmatched Pool ride
In an unmatched Pool ride, Uber may take a loss. The driver earns for actual time and distance.
Well-matched Pool ride
When we match riders for every seat, Uber should receive a service fee. The driver earns for actual time and distance.
The Uber service fee helps expand access
Upfront pricing helps expand access to mobility and work. Trips with higher service fees help offset the lower prices that aim to make rides with Uber more affordable for more people. More trips create more opportunities for drivers. The service fee also funds driver promotions that offer drivers extra earnings and help make Uber more reliable.
Some of the features described on this page do not apply or are not available in California and in markets outside of the US. As we work to improve the marketplace, we may test functionality and pricing in ways not described on this page.