Uber Ride is a company of choice among people. However, the cost of riding Uber differs from city to city. So, have you ever wondered how much does a 20-minute Uber cost?
If not, don’t worry; we’ve got you covered. In this guide, we’ve compiled every detail on how Uber charges, why it is so expensive, and how you can make it cheaper.
Keep on reading to find the secrets to make your Uber ride cheaper.
About Uber
Uber is an on-demand car service that allows users to book a car through their Android or iPhone app.
The idea of Uber came when Garett Camp and Travis Kalanick had to spend some $800 hiring a private driver on New Year’s Eve.
The prototype of the app was built by Camp, with Kalanik as the ‘mega advisor’ to the company. Uber’s services and mobile app were launched in San Francisco, which allowed its users to hail a Balck luxury car, but the prices were 1.5 times that of a taxi.
Then, in 2012, Uber launched a service in Chicago whereby users were allowed to order a regular taxi or book an Uber driver via its mobile app.
During its journey, the company acquired many companies, such as Ottomotto, Drizly, and Car Next Door, but it also faced many hardships.
Uber Net Revenue And Income
Here is a table representing the net revenue and net income of Uber from 2014-2022:
| Year | Revenue | Net income |
|---|---|---|
| 2022 | $31.8 | -$9.1 |
| 2021 | $17.4 | -$0.4 |
| 2020 | $11.1 | -$6.7 |
| 2019 | $14.1 | -$8.5 |
| 2018 | $11.3 | -$1 |
| 2017 | $7.9 | -$4 |
| 2016 | $5 | -$3.6 |
| 2015 | $1.7 | -$1.6 |
| 2014 | $0.4 | -$0.7 |
How Do You Use Uber?
Using Uber is a simple process. Firstly it requires you to download their app on your Android or iPhone. Now let’s begin the process of using Uber.
1. Create An Account
The first step after downloading the Uber app is to create an account. It requires your mobile number and email. You can also request the ride from your browser.
2. Enter Your Destination
As soon as you open the app, enter your destination in the ‘Where To?’ box. Then, confirm the pickup location and confirm again to match with the driver nearby.
3. Meet Your Driver
Uber app allows you to track your driver on the map. When they are just a few minutes away, wait for them at the pickup location.
4. Check Your Ride
Every time your Uber ride arrives, make sure you are getting into the right car with the right driver. Match the car’s license plate, car make and model, and driver’s photo, which will be provided in the app.
5. Payment Options
Once you are in the car, sit back and relax. For payment, you have options for cash or methods like Uber cash or credit card. The payment method highly depends on the region the region you have booked the Uber.
6. Rate The Ride
Lastly, it’s time to let Uber know how your trip went. You can compliment the driver or add a tip in the app.
How Prices Are Estimated By Uber?
In most cities, you will be charged an upfront fee before you confirm your ride, but in other cases, you’ll get an estimated fare after your ride has been completed.
This is because anything can happen when you’re on the ride. For instance, you may want to stop somewhere and extend your ride further by having your driver go in a different direction.
Even when you are stuck in traffic, the charges might go up in Uber.
Aside from these, there are a ton of different factors which influence the price. Here are a few factors that impact the price of Uber:
1. Base Rate
All Ubers have base rates. It is calculated by the time and distance of the trip. generally, this fare is $1, but it can increase in certain metro areas.
This is also the rate which is guaranteed to all Uber drivers.
2. Long-PickUp Fee
Long-pickup fees help Uber drivers to earn back the cost it takes to arrive at your destination.
If you live far away, then your Uber driver will need to spend some money to reach the destination. It will not be a win-win situation if you are already in debt just to pick up someone.
For this reason, Uber charges long-pickup fees. This fee varies on the distance and the time taken by the driver to reach the location.
3. Per-Minute Fee
The per-minute fee is the biggest deciding factor in how much you pay. This is because even a 10-mile ride can end up taking half an hour if the traffic is terrible.
The final fee is calculated on the basis of the time of the day and location. This can be an advantage for you if you are driving through the highway, but it can be a costly ride if you are driving through a heavy traffic area.
4. Minimum Fare
This is another fee that adds to the total cost of your ride. The minimum fee is just like the base fee, except the base fee is associated with the pickup part, and the minimum fare is added to the actual ride.
This fee is applied when you want to cancel or change your destination halfway through the ride.
In these cases, many other charges might be applicable, but you’ll still have to pay the minimum fare.
5. Cancellation Fee
When you suddenly want to cancel the ride, even if you haven’t stepped in the car, you’ll need to pay the cancellation fee.
This is because when you book a ride, the driver might be coming from a far end of the city. And when you cancel it, then that money of the driver to reach to destination is wasted.
How Much Does A 20-Minute Uber Cost?
Uber charges a different price for all its customers; whether it be a professional or a student, the prices differ on the basis of the distance and the Uber you choose.
For instance, in Los Angeles, the Uber rides are:
| Type Of Ride | Cost Per Minute | Cost Per Mile | Minimum Fare | Base Fare |
|---|---|---|---|---|
| Black SUV | $0.75 | $3.76 | $25.75 | $15.75 |
| Uber Black | $0.71 | $2.92 | $15.75 | $8.75 |
| Uber Select | $0.60 | $1.90 | $12 | $5 |
| Uber XL | $0.30 | $1.61 | $9 | $1 |
| Uber Comfort | $0.38 | $0.92 | $10 | $0 |
| Uber X | $0.28 | $0.80 | $6.50 | $0 |
Typically, a 20-minute Uber would cost between $11 and $54, depending on the city too.
Let’s see through a table how a 20-minute Uber rise differs on the basis of the ride you choose:
| Type Of Ride | 20-Minute Cost |
|---|---|
| Uber comfort | $19 – $23 |
| Uber XL | $19 – $24 |
| Uber Black | $32 – $42 |
How Much Does An Uber 20-Minute Ride Cost In My City?
Uber Prices for a 20-minute ride differ from city to city and what vehicle you are booking. Here’s a price breakdown of 3 cities. You can also use Uber Price Estimate to determine prices in your city.
1. Los Angeles, California: If you live in Los Angeles, California, you can expect your 20-minute Uber ride to cost the following:
- Uber X will cost about $11 – $14 for a 20-minute ride
- Uber Comfort will cost about $14 -$18 for a 20-minute ride
- Uber XL will cost about $17 -$22 for a 20-minute ride
- Uber Black will cost about $32 – $42 for a 20-minute ride
- Uber SUV will cost about $44 – $54 for a 20-minute ride
- Uber Select will cost about $26 – $32 for a 20-minute ride
2. New York City: If you live in New York City, you can expect your 20-minute Uber ride to cost the following:
- Uber X will cost about $17 – $18 for a 20-minute ride
- Uber Comfort will cost about$18 – $19 for a 20-minute ride
- Uber XL will cost about $18 – $20 for a 20-minute ride
- Uber Black will cost about $28 – $31 for a 20-minute ride
- Uber SUV will cost about $38 – $40 for a 20-minute ride
Note: These price estimates might differ due to traffic, discounts, or other circumstances.
Why Is Uber Ride Expensive?
How To Make Uber Ride Cheaper?
Fortunately, there are a few ways through which you can make your expensive Uber ride cheaper.
1. Use UberX
When you get the option to select your Uber ride, opt for UberX. This is the cheapest option that will give you the same high-quality care experience and help you save some money on your bill.
It just won’t be anything grand.
2. Uber Rewards
Every time you book a ride, Uber rewards you with some points. These points can be redeemed for certain rewards.
Some rewards include free ride upgrades and flexible cancellation.
3. Promos
You can also look for some promos and coupons of Uber. These promo codes or coupons are especially available during holidays or some special events and can help you save money on your ride.
4. Uber One
Uber One is a membership plan of Uber in which you get 5% off your rides.
However, this discount also comes with a restriction of rides on which this discount is available. But given the price of the Uber, Uber One membership is worth it.
5. Share
The last option to reduce the price of your ride is to carpool with your friends or coworkers. If everyone shares the same Uber, then you can split the price. Sharing will make the ride more affordable.
How To Schedule An Uber Ride In Advance?
Best Credit Cards For Uber Rides
If you often use Uber, then the below-listed credit cards will bring you value for money:
1. Capital One Savor Cash Rewards Credit Card
Capital One card is the best card for Uber purchases. It offers an industry-leading 10% cashback on Uber rides and Uber Eats purchases, plus an Uber One membership which usually costs $9.99 per month.
The Capital One Savor Card also offers 4% cash back on dining, entertainment, and popular streaming services.
2. American Express Green Card
With American Express Green Card, you earn 3x points on all transit purchases, including Uber rides.
It’s a great way to accumulate membership Rewards points on eligible travel, restaurants, and transit.
3. Platinum Card From American Express
This card doesn’t offer a bonus spending category for Uber. However, it offers up to $200 annually in Uber cash and Uber Eats order.
It is the number one card for luxury travel benefits.
Conclusion
Using Uber, even for a 20-minute ride, can be way too expensive. To save money, you can check what time of the day the demand for Uber is at hike and at what it is low.
You can also see the Uber app and Price Estimate Tool to determine how much your ride is going to cost.
Moreover, if you think Uber is profitable, then you should definitely consider owning a Uber franchise.
FAQs
Are Uber cheaper than a taxi?
Yes, Uber is a little bit cheaper than a traditional taxi. Most often, Uber fares can be 40% cheaper than taxis.
How much does Uber charge from drivers?
Uber takes only 75% of the ride; the rest, 75% of the fare price, is kept by the Uber driver.
Why is Uber so expensive fo a 10-minute ride?
Factors like traffic highly affect the price of the ride, making it expensive even for a 10-minute ride.