Uber's short-trip pricing is driven by a high base fare and minimum fare requirement designed to ensure the trip is worth the driver's time and fuel. Even a two-minute drive incurs fixed costs like the "booking fee," insurance, and the platform's service fee. In 2026, dynamic (surge) pricing also plays a role; if demand is high in a specific block, the price spikes regardless of distance. Essentially, you are paying for the "convenience" of the car coming to your exact location, which often makes the "start-up" cost of the ride significantly higher than the actual per-mile rate for short distances.