Uber introduces hourly rates for longer trips

The new ‘Hourly’ option lets riders set the amount of time they think the trip should take and thus lock in a flat hourly rate for the whole duration.

FILE PHOTO: An Uber sticker is seen on driver Margaret Bordelon's car in Lafayette, Louisiana, U.S. February 16, 2020. Picture taken February 16, 2020. REUTERS/Callaghan O'Hare/File Photo (REUTERS)

Uber has introduced a new feature for riders who need to make longer trips with multiple stops. The new ‘Hourly' option lets riders set the amount of time they think the trip should take and thus lock in a flat hourly rate for the whole duration.

Uber has had the multistop option for a trip for a while now, but now, with this new hourly rate, the feature getting an upgrade, of sorts. Uber is looking to tap in on riders who would have used public transport to run a bunch of errands and are currently not doing it because of the pandemic.

In a statement, Uber's director of rider operations Niraj Patel described this feature as “an additional earnings opportunity for drivers as we move forward in this ‘new normal',”.

Currently kicked off in the US, riders are going to be charged $50 for an hour and will be asked to select how long the trip will last before confirming it. The rider will have to pay for the time they have selected even if the trip takes lesser time than they thought. There is an option to add three destinations over the trip and the rates for these trips do not include tolls, surcharges etc.

Some restrictions have been put in place though. Riders cannot use this ‘hourly' feature for trips to or from the airport. And there also might be mileage limits based on the city, like it's 40 miles for some cities. Riders will be charged at a per-minute rate for trips that go on longer than the time limit set or if the per-mile rate for trips go over the mileage limit of the city. This per-minute rate will be prorated based on the main $50 charge.

Uber has tested the idea overseas in countries like Australia, Africa, Europe and the Middle East and is now bringing it to 12 US cities - Atlanta; Chicago; Washington, DC; Dallas; Houston; Miami; Orlando; Tampa Bay' Philadelphia; Phoenix; Tacoma; and Seattle.

The company says it expects to expand it to more cities in the coming weeks.