In-Depth Guide to Uber: Account Setup, Usage, Pricing & Driver Payments

Uber is a prominent transportation provider offering a variety of services, including freight transportation, food delivery, and ride-hailing. The company originated in San Francisco, California, and currently serves over 10,500 cities in approximately 70 countries worldwide.

Uber provides a convenient transportation solution that allows customers to order rides through a smartphone app. The platform efficiently connects passengers with nearby drivers using GPS technology. These drivers work as independent contractors, using their vehicles to transport people. Uber calculates fares based on distance traveled and considers the time of day.

How to Create an Uber Account:

1. Download the Uber app from the App Store or Google Play.
2. Launch the app and tap “Get Started.”
3. Enter your phone number and tap “Continue.”
4. Input the 4-digit code sent to your phone.
5. Provide your email address and tap “Next.”
6. Enter your first and last name, then tap “Next.”
7. Agree to Uber’s terms and conditions and tap “Next.”
8. Add a payment method, such as PayPal, a credit or debit card, or both. This step can be skipped temporarily, but a payment method must be added to request food delivery or rides.
9. Once you’ve filled in the necessary details, your account will be created, and you’ll receive an email confirmation.

To use Uber, open the app and enter your desired destination. A comprehensive list of available rides with estimated fares will be displayed. Select your ride, and Uber will promptly dispatch a driver to your location.

How to Use Uber:

To use Uber, you’ll need to download the Uber app on your smartphone or tablet and create an account. Then, follow these steps to request a ride:

1. Open the Uber app and enter your destination in the “Where to?” field.
2. Choose the type of vehicle you want.
3. Tap “Request.”
4. Confirm your pickup location.
5. Wait for a driver to accept your request.
6. Once your request is accepted, you can track your driver’s arrival using the map.
7. Verify the driver’s license plate and car model when they arrive.

When you enter the vehicle, greet the driver. Your driver will take you to your destination, and you can use the Uber app to pay for the trip. Besides PayPal, you can also pay with a credit or debit card.

Uber Pricing in Nigeria:

In Nigeria, Uber charges ₦25 per minute. This rate recently increased from ₦16 per minute, effective from June 13, 2023. Uber employs dynamic pricing that may adjust ride prices based on various factors, including demand. While prices may increase during high-demand periods to incentivize more drivers to be available, the per-minute charge remains consistent.

To calculate the total cost of an Uber ride, consider not only the per-minute rate but also the base fare and booking fee. The base fare is a fixed amount for every ride, regardless of distance, while the booking fee covers ride request processing expenses.

How Uber Drivers Get Paid:

Uber drivers receive payments through various methods, which can vary based on the city they operate in and the types of trips they complete.

1. Standard Fare: Drivers earn payment for each completed trip, with the amount determined by factors like distance, trip duration, and any surge pricing (if applicable). Surge pricing allows Uber to charge higher fares during peak demand, with drivers receiving a larger share of the increased fare.
2. Minimum Trip Earnings: Each city typically sets a minimum amount drivers will earn for any trip. These minimums are established to ensure drivers receive fair compensation.
3. Service Fee: Uber applies a service fee to each ride to cover expenses related to app development, customer support, and operational costs.

In summary, Uber’s pricing structure considers factors like distance, time, demand, and operational costs. Surge pricing enables fare flexibility during peak times, while minimum trip earnings guarantee fair driver compensation. The service fee is essential for covering platform operation and customer support expenses. Uber’s pricing model aims to balance the needs of both riders and drivers while maintaining a sustainable business operation.