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Uber

A ride-hailing app that connects riders with nearby drivers.

uber.comApp Store27 sources65 tips
In short

Uber replaced a $14-$20 price range with a single estimated price after users anchored on the top of the range and booked less. Rides per user rose by a double-digit percentage. Lesson: reduce price uncertainty at checkout. Separately, Life360's landing-alert partnership with Uber shows partner offers work when they add real user value.

At a glanceUber's single price estimate beat the price range
Price range
  • Showed $14-$20 at checkout
  • Users fixated on the high end
  • Ride felt more expensive
  • Users felt uncertain, booked less
Single estimateWon
  • Showed one estimated price
  • Users saw a specific cost
  • Less hesitation at decision

Double-digit increase in rides per user

From Uber A/B test on checkout pricing

What was said about Uber

  • Uber swapped a price range for one estimate and rides per user rose. Uber first showed a $14-$20 range at checkout to better manage traffic and costs. Users fixated on the high end, felt uncertain and booked less. Showing a single estimated price led to a double-digit increase in rides per user.

    When shown $14-$20, users focused on the upper figure rather than the midpoint, which made the ride feel more expensive. The lesson is to be specific about cost at the moment of decision to build trust and cut hesitation. If a range is unavoidable, expect the top number to drive the choice.

    Version A and version B as Uber tested them.
    Version A and version B as Uber tested them.
  • A landing notification built at a hackathon started Uber's partnership with Life360. Uber proposed offering a ride when someone lands, an offer tied to a user's location and context. It is cited as an example of partner offers that add real user value.

    The stated baseline for any ad or offer is do no harm: "make sure that the ads are not intrusive, not invasive, and they're not unwelcome by the audience." Life360 only started ads in the last 2 years, at a company about 15 years old.

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