From Jalopnik · Charles Krome · · 1m
Consumer Reports Finds Uber Uses AI to Set Prices
Consumer Reports reveals Uber's AI pricing system charges up to 42.4% more for same routes based on personal data.
In brief
Consumer Reports reveals Uber's AI pricing system charges up to 42.4% more for same routes based on personal data. Consumer Reports found Uber's AI pricing system can charge up to 42.4% more for identical routes using rider data. Originally reported by Jalopnik.
Consumer Reports Study
Consumer Reports found Uber and Lyft charge up to 42.4% more for same routes at same time.
“generally within six minutes of one another and, in many cases, within the same minute”
Uber's AI Pricing System
Uber uses personal data like walking speed and gender to adjust prices for rides.
“the same information can also help determine someone's gender”
Price Differences Explained
Uber and Lyft charge based on rider history, not just supply and demand conditions.
“the bottom line is that CR found no concrete evidence that they do, but positive evidence that they can”
Profit Share Increase
Uber's profit share jumped from 32% in 2022 to 42% by end of 2024.
“the typical take for Uber, for example, was 32% in 2022 and had jumped to 42% at the close of 2024”
Fake Discounts
Uber and Lyft offer 'discounts' that are actually inflated prices with no real reduction.
“the 'discount' from $82.08 is fake. $65.95 is the route's approximate starting price”
Personal Data Use
Both companies use rider data to set prices and discounts without clear explanation.
“no one explains how that's different from using personal data to set fares”
The essence
Consumer Reports found Uber's AI pricing system can charge up to 42.4% more for identical routes using rider data.
