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Automobile Italia / Flickr cc

A year after Uber introduced "upfront pricing"—setting the price of a ride on the outset—it's now beginning to charge more for certain routes in an effort to juice up its earnings, as Bloomberg reported. The company says it uses the extra money to subsidize other rides, and will begin to show drivers the difference between what they're earning and what the rider paid.

It's officially rolling out the changes in the 14 markets where it offers UberPool, its carpooling option.

Old-fashioned economics: What Uber's doing is pure economics—price discrimination to charge riders it describes as time-sensitive (those paying more for a private UberX ride) to subsidize price-sensitive riders (usually those taking the cheaper UberPool option). The former group, according to Uber, is willing to pay more for a particular route at a particular time than it has been paying, so Uber will now charge these riders what it believes is that maximum price. An Uber spokesperson assured Axios that pricing has nothing to do with a rider's perceived level of income, past rides, or any individual characteristics.

Uber's love of classic economic principles is nothing new—"surge pricing," its practice of hiking prices in times of higher demand, is textbook supply-and-demand.

Go deeper

Dave Lawler, author of World
2 hours ago - World

Venezuela's predictable elections herald an uncertain future

The watchful eyes of Hugo Chávez on an election poster in Caracas. Photo: Cristian Hernandez/AFP via Getty

Venezuelans will go to the polls on Sunday, Nicolás Maduro will complete his takeover of the last opposition-held body, and much of the world will refuse to recognize the results.

The big picture: The U.S. and dozens of other countries have backed an opposition boycott of the National Assembly elections on the grounds that — given Maduro's tactics (like tying jobs and welfare benefits to voting), track record, and control of the National Electoral Council — they will be neither free nor fair.

Biden plans to ask public to wear masks for first 100 days in office

Joe Biden. Photo: Mark Makela/Gettu Images

President-elect Joe Biden told CNN on Thursday that he plans to ask the American public to wear face masks for the first 100 days of his presidency.

The big picture: Biden also stated he has asked NIAID director Anthony Fauci to stay on in his current role, serve as a chief medical adviser and be part of his COVID-19 response team when he takes office early next year.