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Uber’s new wait-time fee ‘fair’, commuters say

SINGAPORE — They may have to fork out extra money for being late, but users of Uber’s ride-hailing service are largely unperturbed by the company’s new “wait-time” fee, which they felt is only fair to the drivers.

They may have to fork out extra money for being late, but users of Uber’s ride-hailing service are largely unperturbed by the company’s new “wait-time” fee, which they felt is only fair to the drivers. Photo: Najeer Yusof/TODAY

They may have to fork out extra money for being late, but users of Uber’s ride-hailing service are largely unperturbed by the company’s new “wait-time” fee, which they felt is only fair to the drivers. Photo: Najeer Yusof/TODAY

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SINGAPORE — They may have to fork out extra money for being late, but users of Uber’s ride-hailing service are largely unperturbed by the company’s new “wait-time” fee, which they felt is only fair to the drivers.

On Wednesday (Oct 4), Uber joined rival Grab in charging passengers who make drivers wait beyond a stipulated time at the pick-up point. This new feature is being tested among selected drivers.

Riders who spoke to TODAY noted that Grab charges a higher wait-time surcharge. Some felt that drivers should similarly be penalised if they are slow in reaching them.

The new fees by Uber vary according to the service chosen. For those who book the UberX low-cost private-hire cars, they will be charged 20 cents a minute if the driver has waited more than three minutes.

It is 35 cents a minute for riders who book the larger UberXL vehicles, and 45 cents per minute on the UberExec mid-tier luxury sedans.

Wait-time fees will surge as demand goes up, and will be pro-rated. For instance, UberX riders will be charged 10 cents, or half the per-minute rate, if they arrive half a minute after the fee sets in.

Drivers receive an amount based on the per-minute rates, which would “fairly reflect” the time they spend on the road, Uber said. It is unclear if Uber takes a cut from the fee.

Figures on the extent of passengers’ punctuality problem are not available, but drivers told TODAY that they encounter one or two such cases a day out of 15 to 20 bookings. These riders are usually three to 15 minutes late.

For those who book rides via Grab, if drivers are made to wait more than five minutes, there is a S$3 surcharge for every five minutes of extra waiting time under its fixed-fare JustGrab service and GrabCar private-hire car option.

Ms Lee Pei Zi, 25, a financial analyst, said that Uber’s new wait-time fee would encourage punctuality among riders, but drivers should be charged a similar fee. “This will ensure both parties adhere to the timing and arrive at the pick-up point promptly.”

Mr Darrell Lua, 26, a mergers and acquisitions analyst, felt that the wait-time fee was fair, since riders should not book rides with the intention of making drivers wait. He disagreed on the point that a similar fee be imposed on drivers, because commuters are shown the time period when drivers will arrive. “If they feel it’s too long, customers can always cancel and re-book,” he said.

When asked if Uber would impose a similar fee on drivers, a spokesperson for the firm said it will monitor feedback from riders and drivers closely. 

The spokesperson added that the company has seen the fee's positive impact in other cities. "When driver-partners efficiently spend less time waiting for a trip, riders experience lower estimated times of arrival and waiting time," she said. 

Uber drivers had mixed responses to the move.

Mr Chris Koh, 50, who has been with Uber for two years, said that “time is money” for drivers and they are looking to clock as many trips as possible. “We’re not looking to make that 20 cents a minute from the rider. All we’re looking for is that the rider be on time, so that we can pick up (the person), do the drop-off, and then pick up and drop off (another person) without having to keep waiting,” he explained.

Fellow driver Lim Kee Ching, 57, who has also been with Uber for two years, is of the view that the wait-time fee would not make a difference, since it was a “small amount”. Still, it will encourage riders to be on time, he said.

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