[darrin]

Wouldn't the simple solution be to guarantee a minimum hourly rate from the time a driver accepts the ride to the drop-off? Uber would have an incentive to be efficient (find closer drivers, get more drivers on the road) and drivers wouldn't worry about the 45min-$5-ride problem. If the ride is profitable on its own, there's no change. If there are no close drivers for a short ride, the ride would (and should) cost more.

[ipaddr]

Wouldn't this encourage slow driving to increase ride prices?