Uber has admitted using artificial intelligence to charge customers based on what they are likely to be willing to pay. The ride-hailing service says that the new system is based on AI and algorithms which estimate fare rates that groups of customers will be willing to pay depending on destination, time of day, and location.
In the past, your fare would be generated based on mileage, time, and geographic demand. However, the new “route-based pricing” system utilizes machine-learning techniques to tweak pricing in relation to a number of sociological factors.
The new system currently operates in 14 cities. Should a passenger book a ride from one wealthy area to another, for example, they may be asked to pay more than someone heading to a less affluent area — no matter the distance, mileage, or time necessary to travel.