澳洲幸运5开奖号码历史查询

How Uber Uses Your Ride Data

A businessman getting into backseat of exclusive cab.

 Klaus Vedfelt / Getty Images

Face it, if you're one of its regular customers, Uber knꦅows more about you than your own mother does. It knows how often you get out, where you like to have lunch, where you go at night and when, or whether, you go home at the end of it.

Key Takeaways

  • Uber's data collection system is constantly in motion to match up drivers and riders. Its "surge pricing" draws in more drivers as needed.
  • The company has made a number of marketing alliances, including many in the travel space.
  • Its biggest rival, Lyft, has concentrated on partnering with medical services providers to provide non-emergency transport.

That makes Uber potentially a giant data-mine, just like Google, Visa, o🦄r Facebook. All oಞf those companies can use the data to run their businesses more efficiently or develop their services more effectively. Or, they can sell it in batches to advertisers for delivery of customized advertising and promotions.

Here are some of the ways that Uber is using its data so ওfar.

The Uber Disclaimer

First, it should be noted that Uber states that the data it constantly collects on both riders and drivers is "anonymized and aggregated."

Whatever its other uses, the data is critical to its efficient 24-hour operation in more than 10,000 cities around the world. Uber knows where customers are waiting and where drivers are cruising, and it has to put them together fast. Tracking supply and demand allows them to implement "surge pricing," boosting fares at peak times to draw more drivers out.

Marketing Partnerships

Uber's customer base of mobile urban professionals is catnip to marketers looking for partners. The company has made the most of it, signing deals with Starwood Hotels & Resorts, American Airlines, Hilton Hotels, American Express, Capital One, PayPal, and Pepsi.

These partnerships can take many forms. Starwood offered extra points to Preferred Guest members who took Uber rides. 澳洲幸运5开奖号码历史查询:American Airlines added an Uber reminder button to its app. Pepsi gave free DeLorean rides to London Uber riders.

Uber's top competitor, Lyft, has also been active in the co-marketing space. It has been particularly successful in attracting partners like Allscripts and Blue Cross Blue Shield to expand its ride services for non-emergency healthcare transportation. 

Municipal Partners

If anybody is in need of some traffic data, it's America's city planners.

Starting with an initiative in Boston that began in 2015, Uber handed over data to city planners in hopes that it would help them understand how people move around Boston, or at least how they try to.

Important

The reach of the AMBER Alert program was broadened by adding Uber's drivers to its notifications of missing children.

That experiment reportedly had mixed success in delivering information that was of use to city planners and policymakers trying to improve traffic flow and reduce congestion.

However, Uber is still trying. It has launched a site called Uber Movement that includes a searchable database of historical trip data from every city in which it does business.

AMBER Alert Program

Uber has partnered with the  (NCMEC) to provide time-sensitive and critical AMBER Alerts to its drivers across the U.S.

According to Robert Hoever, director of special programs for NCMEC, “The AMBER Alert program’s success is built on the ability to reach the right people at the right time with these potentially life-saving messages. Uber’s presence in communities all across the country will be an incredible asset and we are proud to team up with Uber to increase the reach of the AMBER Alert program and help bring more missing children home safely.” 

Surge Pricing

While Uber didn't invent dynamic pricing, it is largely responsible for raising public awareness of surge pricing. Surge pricing or peak pricing is the practice of temporarily raising prices during periods of hᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ�♔�ᩚᩚᩚigh demand. In many ways, surge pricing is the truest expression of a business adjusting prices in real time based on supply and demand.

Uber uses geolocation data from users, drivers, and street traffic to assess the optimal price to charge users to ensure it can capture the most business possible and boost profits. When many users are requesting rides, and there are not enough drivers to meet demand, prices rise (surge). Uber can adjust pricing extremely accurately based on demand, surging prices in one neighborhood while lowering prices in the next based on user demand, driver availability, and traffic.

How Does Uber Match Riders With Drivers?

Uber uses a process known as batched matching to pair riders with drivers. Batched matching considers all the rides requested around the same time in a given area, calculates ETAs for those rides, and then assigns drivers to reduce the total wait time for users as much as possible. This means it doesn't always connect drivers to the closest prospective rider but rather assigns rides to reduce the average wait time for everyone.

How Can You Avoid Uber Surge Pricing?

The best way to avoid su✤rge pricing on Uber is to not request a ride during peak hours. To find out peak hours. Peak hours can vary, but are typically highest🍎 during rush hour, on weekends, and during events.

How Does Uber Use Rider Data?

Uber uses rider data in numerous ways, including understanding and resolving support tickets, finding and solving software bugs, and displaying trip history. It uses location data to match rider🎐s with available drivers and also to adjust pricing based on supply and deman💟d in a given area.

The Bottom Line

Uber has partnerships with numerous entities, including marketing agreements with private brands and programs with municipal organizations. It shares rider data with these organizations to provide additional benefits to its 🤪users and react to time-sensitive and urgent situations such as AMBER Alerts. Uber 🌠also uses rider data to adjust pricing in real-time, raising the cost of using its services when demand for rides is high, and there are a limited number of available drivers.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Uber. "."

  2. Uber. "."

  3. Uber. "."

  4. Uber. "."

  5. American Airlines. "."

  6. Uber. ""

  7. Blue Cross Blue Shield. "."

  8. Allscripts. "."

  9. Uber. "."

  10. Uber. "."

  11. Boston Globe. "."

  12. Uber. "."

  13. Uber. ""

Related Articles