Uber's average U.S. fares jumped 83% from 2018-2022, nearly four times inflation. Critics say algorithms extract maximum revenue from riders. The company denies using personal data.
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Uber's average U.S. fares jumped 83% between 2018 and 2022, nearly four times the annual rate of inflation, according to a Business Insider analysis. The company's shift to up-front pricing, which replaced the time-and-distance meter model, uses algorithms and real-time data to set what riders pay and what drivers earn.
That discretion has led to wide price swings. Business Insider employees who requested the same UberX trip at the same moment saw the highest fare come in nearly 21% above the lowest. A Consumer Reports test of Uber and Lyft found even larger gaps on some routes.
Critics argue the algorithms are designed to extract maximum revenue from riders while minimizing driver pay. Uber flatly denies using personalized data to set prices, attributing the increases to higher operating costs and a post-pandemic shortage of drivers.
The pricing model has drawn attention from regulators and consumer advocates. No formal action has been announced, but the contrast between the 83% fare increase and the U.S. inflation rate over the same period remains a flashpoint. Uber's next quarterly earnings report, due in early November, will offer updated metrics on rider demand and driver supply.
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