For many people, using Uber is an ideal way to get around the city or neighborhood.
In cities, especially, it allows residents to rely on others for taxi services rather than owning cars, themselves.
For Uber drivers, it’s a way to earn extra money or a full-time income to support themselves and their families.
Using Uber for the first time, however, can be confusing if you’re unsure how the rates work.
Here’s what you need to know about Uber rates and how much you’ll need to pay for certain drive times.
How Much Does A 20-Minute Uber Cost?
The cost of a 20-minute Uber ride can cost as low as $20 on the low end to $50 on the high end.
The variable cost will depend on the area, total mileage, and vehicle.
The cost for a 20-minute ride in your area may not be the same as it is in another area.
However, as an example, a 20-minute trip from Lansing, MI to Mason, MI (which is just over 20 miles) costs just over $30.
That’s if you were to choose an Uber economy selection.
If you wanted to ride in a large vehicle, then it would cost you over $40.
How Does Uber Break Down Its Fees?
When you use Uber, you don’t pay a flat fee.
Like a standard taxi, you’ll end up with the final cost at the end of the ride.
That’s because anything can change while you’re on a ride.
You may realize that you need to stop somewhere and extend your ride further by having your driver go in a different direction.
You may end up stuck in traffic which extends the time you’re using Uber.
There are tons of different factors which influence the price.
Here are some of the fees associated with a final Uber cost.
1. Base Fare
All Ubers have a base fare associated with them.
This fare is usually around $1, but it can quickly increase in certain metro areas.
This is the base price that a driver gets guaranteed.
2. Long Pick-Up Fee
If you don’t happen to have any Uber drivers near you, then you may get a Long Pick-Up Fee.
This fee helps the driver earn back the cost it takes to arrive at your destination.
If you live far from them, then they’ll need to spend more money to get to you first.
It’s difficult to earn money if you’re already in debt by just driving to pick someone up.
That’s why Uber charges a long pick-up fee to those who live far from Uber drivers.
This fee varies based on the distance and time it takes for the driver to arrive at your location.
3. Booking Fee
One of the biggest fees you’ll notice upfront is the booking fee.
This fee basically locks you in for a ride.
It acts as an assurance that you’re going to be there when the Uber driver pulls up.
That said, if you choose not to show up or you have to cancel your ride, then you can expect more fees.
4. Minimum Fare
Another type of fee that adds to the total cost of your ride is the minimum fare.
This acts like the base fee except the base fee is associated with the pickup part of Uber while the minimum fare applies to the actual ride.
The minimum fare is the amount you pay to the driver at the very least for your ride.
You may need to cancel or change your destination halfway through.
While this means you’re usually hit with a few other fees, you’ll still need to pay the minimum fare.
5. Per-Minute Fee
One of the big deciding factors that determine how much you pay is the per-minute fee.
That’s because even a 10-mile ride can end up taking a half-hour if the traffic is terrible.
Because of that, Uber implemented a per-minute fee.
The exact fee changes based on time of day and location.
In the Lansing example, the per-minute fee was $0.17.
For every minute that passes, another $0.17 is added to the total cost.
That’s not terrible if you’re doing mostly highway driving outside of a congested area.
However, if you’re driving in an area with a lot of traffic or doing some city driving, then that fee can quickly add up.
6. Per-Mile Fee
Another fee that drives up the cost of your Uber is the per-mile fee.
Like the per-minute fee, the per-mile fee is Uber’s attempt to ensure its drivers get paid decently for longer distances.
It’s not always likely that the driver will be able to find someone who wants a ride back to the original destination.
As such, they usually end up losing out on money if they’re traveling over a long distance.
The per-mile fee helps them earn more money on longer distances.
As an example, it may take only 20 minutes to drive 20 miles.
While this may not seem like a lot, it means that the driver is going to have to drive 20 miles back from where they were at some point to go home.
If they don’t live in that area, then they might need to travel even further.
That ends up cutting into their profit.
By having a per-mile fee, they’re able to earn more money no matter if they’re traveling 20 miles away or 100 miles away.
The per-mile fee for the Lansing to Mason trip was $1.20.
7. Cancellation Fees
If you suddenly discover that you need to cancel your Uber, then you can expect to pay a fee even if you never stepped into the car.
That’s because by booking an Uber, you’re making someone drive to your location.
The driver may be coming from the other side of the city.
They may even be driving in from the suburbs or countryside.
They’re spending money to reach your destination.
If you cancel, then that’s money that they wasted heading your way.
A cancellation fee helps alleviate some of the funds that they wasted.
The cancellation fee varies.
Factors like the distance between you and the driver and how soon before your scheduled pick-up time it is when you canceled affect the rate.
All these fees add up to the final price of your Uber no matter if you’re traveling 20 miles or 5.
8. Bonus: Tipping
One fee that Uber doesn’t list on its pricing tool is tipping.
That’s because tipping isn’t required, but it is strongly suggested.
Uber drivers don’t earn the full amount that you’re paying for the service.
They only get a percentage of that amount with the corporation getting the rest.
Because of that, it’s difficult for most Uber drivers to make a living out of the service without the help of tips.
It’s tips that enable them to fill up their gas tank and perform maintenance on their cars to keep providing their services.
It’s tips that allow them to pay bills and feed their families.
The amount that you tip is entirely your own decision, but you should calculate a tip into your overall Uber cost.
Why Are Uber Rides So Expensive?
Considering that Uber is basically a fancy taxi service, you may wonder why their fees are as expensive as they are.
Here are a few reasons Uber rides are expensive.
1. Demand
One of the biggest reasons Uber rides are sometimes more expensive than other times is demand.
If you order an Uber during rush hour, then you can expect a higher cost.
That’s because there are a lot of people looking to use Uber to get home or go to work.
Since there are a lot of people requesting the service and only a few Uber drivers in the area, the demand outweighs the supply.
Whenever that happens, the price is set in favor of the supplier.
Uber always raises its rates during rush hour.
It’s the most expensive time to use the app.
That means ordering an Uber from 6 to 9 in the morning and 4 to 6 in the evening are some of the most expensive times.
If you’re ordering an Uber for a 20-minute ride, then you should do so outside of rush hour if possible.
2. Distance
Another big factor in your ride’s price is the distance that you’re traveling.
If you’re heading out of the city to a neighboring city, then you can expect to pay a lot of money.
That’s because Uber charges by the mile as well as by the minute.
Since the Uber driver is going to be spending more time with you, they need that time to be worth it.
They’re also spending more gas on a single passenger as opposed to several passengers.
If they’re able to serve a large number of passengers, then the cost of fuel gets divided up between them all.
For someone traveling a long distance on their own, the cost of fuel ends up falling on them alone.
Finally, longer distances also put more wear and tear on a car.
The car usually has to drive to your destination and then back to wherever the driver lives afterward or to their next rider.
With more wear and tear on the car, the driver is going to be closer to needing a repair than they would be otherwise.
To cover the cost of eventual repairs, longer distances end up being more expensive.
3. Type Of Car
Uber has several different classifications of cars to choose from when riding with them.
The types of cars in your area depend on how large the city is and the availability of drivers.
For example, if you live in a smaller city, then you may only have access to economy Ubers and extra-large Ubers.
There may not be an Uber driver in the area who has a luxury car that they use for rides.
There are a bunch of different cars that are sometimes available, however.
The cheapest is UberX.
This is their economy car and essentially covers any standard car.
A slightly more expensive ride is Uber Comfort.
These are cars that are a bit bigger like smaller SUVs.
They offer more legroom and just a bit more of a comfortable ride.
The next most expensive is UberXL.
These cars are minivans or other larger SUVs that can accommodate multiple passengers or packages.
The most expensive type of Uber is UberBlack.
This is where all the luxury cars are available.
You might find your driver pulling up in a sports car or even a limo.
Since they’re luxury cars, the service comes with a luxury price tag.
Finally, some areas also offer Uber Green.
If you want to support a green environment, then you may choose to ride in an electric vehicle.
These are a bit more expensive because they’re small in number.
Electric vehicles aren’t mainstream yet, so only a few drivers have one available to serve riders.
While the prices aren’t as expensive as Uber Black, Uber Green does cost far more than UberX or Uber Comfort.
4. Tolls And Surcharges
Finally, your Uber ride might be expensive because of tolls and surcharges.
If there are any tolls on the route that you’re taking, then you’re going to be paying for them.
That’s because it isn’t fair to ask the driver to pay a toll when they’re carrying you to a destination beyond them.
Simply put, Uber drivers don’t make enough money to cover every toll.
You can expect to pay any toll charges by the time you’re done with your ride.
Another charge is a surcharge that you might face.
These are especially common at airports.
If your Uber driver needs to pay some sort of fee while waiting to pick you up or drop you off, then you’re going to pay for that fee.
Again, that’s because the driver shouldn’t face a financial penalty for helping you get to the airport.
These fees may be small, but if you already have an expensive ride, then it can make your final price tag for the ride even more expensive.
How To Make An Uber Ride Cheaper
Clearly, it’s easy to spend a lot of money on Uber.
Luckily, there are a few ways that you can help reduce the cost of your ride.
Here are tips you can use to make your Uber ride a bit cheaper.
1. Use UberX
When you get a selection of different cars to choose from, you should select UberX.
This is the cheapest option available and can easily shave down your bill.
With UberX, you can still expect a high-quality car that will get you where you need to go.
It just won’t be anything fancy.
2. Uber One
Like many other services, Uber also has a membership plan.
If you sign up and subscribe to Uber One, then you can get 5% off your rides.
There are some restrictions on which rides are eligible for the discount, but it can be an ideal way to help reduce some costs.
The membership also gives you a discount on Uber Eats.
3. Uber Rewards
Uber also has a rewards system for its members.
As you use Uber and take rides, you earn points.
Those points are redeemable for certain rewards.
Some rewards include free ride upgrades and flexible cancellations.
It can be an easy way to earn some benefits from a service that you already use.
4. Promos
Although Uber has done away with its sign-up promo, you can still find some promos and coupons around that can help reduce the cost of a ride.
Looking around the holidays and during special events can sometimes net you a promo code that can help you reduce the price of a ride.
5. Share
A final way that you can reduce the price of your Uber is to carpool with your friends or coworkers.
If everyone shares the same Uber, then you can split the price between all of you.
This makes riding Ubers far more affordable.
How Can You Check Your Ride Price For Uber?
If you want to receive an estimate about the cost of your ride, then Uber has two methods that you can use.
The first is through their Uber App.
You can use their app to submit a destination based on your location or another location.
Uber will then give you an estimate and even show you the available rides for that route and their associated costs.
The other method is to use their Price Estimate Tool.
You don’t need to download their app to use it.
You simply type in an address or location where you want to go and where you’re starting from.
Then Uber will calculate the estimated amount and show you the available types of cars for your ride.
You can also get a breakdown of the fees associated with the ride.
Conclusion
Using Uber, even for a 20-minute ride, can become expensive.
Knowing what times of day see the most demand from Uber’s services can help you save money.
You can also use the Uber App and Price Estimate tool to determine how much your ride is going to cost.
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