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Uber News: Pittsburgh Woes, Pool Update, New Prices

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Uber is seemingly in the news every day as the ridesharing powerhouse conquers more and more of the taxicab market and pushes forward with its driverless car technology. Today, we will take a look at three of the latest noteworthy Uber issues.

Pittsburgh Problems

Uber began testing its driverless car program in Pittsburgh, Pennsylvania in September. Now, after initially being accepted by the mayor and the city, Uber might be done testing its new futuristic technology in Pittsburgh. The New York Times first reported Sunday night that the slowly deteriorating relationship between Uber and Pittsburgh might be coming to a close based on a continuing string of issues.

For one, Travis Kalanick’s company backed out of Pittsburgh’s $50 million application for a federal transportation grant. Uber has also started charging for the driverless practice rides it originally promised would be free. And maybe more importantly, Steel City officials and residents feel Uber didn’t make good on its promise to bring jobs to the city.

In response to the allegations that the company is failing to pull its weight, Uber told the New York Times that it has created 675 jobs in the area, while also having contributed to local organizations.

Uber also reportedly became an issue in the city’s recent mayoral primary election, where incumbent mayor and early Uber supporter Bill Peduto won easily.

Pool Updates

Uber announced on Monday that is has updated the “Pool” version of its ridesharing service, which aims to have riders pay less by sharing trips with other Uber users headed in the same direction. However, the company’s cheapest version rarely saves passengers or drivers any time.

Last year, the company updated its app’s algorithms in Manhattan to ask riders to walk a bit in order to save more trip time overall. The hope was to have all of the Pool passengers be picked up on the same street, much like a public bus system. Now, the updated version of Pool, which is being tested in New York, will tell riders in the city’s jam-packed business hub to “choose the best nearby corner for a rider to walk to.”

Uber’s new service will pick people up past a light on the right-hand side of the road, which, according to the company, makes it easier to pick up multiple passengers without the need to change lanes. The company said it will also factor in where bus lanes are located on more crowded streets.

The company wants to cut down on the zigzagging hassle Uber Pool can present to both drivers and passengers by holding off on determining a pick up location. According to the statement, Uber has “improved our algorithm to cut down the number of turns for each mile driven by 20%. We’re also making matches that avoid detours and enable drivers to stay on avenues for more direct routes.”

Uber Charges What It Thinks Passengers Will Pay

In a recent Bloomberg article, Uber’s newest money-making tactic was revealed—and the company made sure its drivers didn’t also collect.

Uber’s new “route-based pricing” will charge customers not based on mileage, time, traffic, and demand as it normally does. Instead, Uber charges riders what its’ algorithms predict they are willing to pay. Uber’s head of product development Daniel Graf said the company now uses machine-learning to determine how much a customer would be willing to pay based on socioeconomic factors.

The basic idea is that Uber will charge someone more who is traveling from a rich neighborhood to another wealthy part of town than a person going to a poorer part of town.

Head here for a more in-depth look at Uber’s competition, controversy, and the possibility of a 2017 IPO.

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