Uber once sold riders on a simple promise: Order a car right from your phone for less than a taxi.
One major change happened behind the scenes: up-front pricing. Instead of relying on a predictable rate based largely on time and distance, Uber now uses algorithms and a range of real-time factors to determine what riders pay and what drivers earn.
Since then, prices have risen dramatically. From 2018 to 2022, average Uber fares in the US rose 83%, nearly four times the annual rate of inflation. And when Business Insider employees requested the same UberX ride at the same time, the highest fare was nearly 21% more expensive than the lowest. A larger Consumer Reports test of Uber and Lyft found even wider gaps on some routes.
Critics accuse Uber of using AI and algorithms to extract the most money from consumers while paying drivers the least. Uber flatly denies using personalized data and cites higher costs and a post-pandemic driver shortage among the reasons prices have skyrocketed.
So, how does Uber actually set your fare? And what is the real reason Uber rides are so expensive?
Also read “Uber driver says these 3 behaviors will get passengers a 1-star rating”: https://bit.ly/4quTEtt
00:00 – Intro
01:46 – Uber’s Good Bargain
04:32 – Era of Up-Front Pricing
08:39 – Same Ride, Different Price
11:32 – Uber Turns a Profit
13:12 – Up-Front Pricing for Uber Drivers
16:54 – Uber’s Take Rate
20:38 – Rise of Algorithmic Pricing
22:35 – Credits
——————————————————
#uber #transparentpricing #rideshare #algorithmicpricing #costofliving #upfront #pricing #soexpensive
WATCH MORE EPISODES FROM SO EXPENSIVE:
The Fight To Make Expensive Stadium Food Illegal
https://youtu.be/j6G91ryji5s
The Illegal Business Of Fake World Cup Jerseys
https://youtu.be/RZGsfvFXStY
How America Made The World Cup Unaffordable
https://youtu.be/dlkgv-rYE4o
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How Uber Uses AI To Charge You More | So Expensive | Business Insider
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Also read “I’m 76 and Drive for Uber After Losing All My Savings”: https://bit.ly/46fgeNa
And “Uber driver says these 3 behaviors will get passengers a 1-star rating”: https://bit.ly/3S8QXRE
@BusinessInsider Can we get a video on the rise and fall of nike please. Thank you
So basically we riders need to be “opaque” to Uber about the prices we are willing to pay for any particular ride to avoid their “upfront pricing”. Got it.
Uninstalled uber right after watching this
I mean there is no secret really. Uber sets the highest price the customer is willing to accept (based on surveilance). Then a % goes to “insurance” and it not only does not corresponds with the risk but also goes to… Uber’s subsidiary that is “insuring”. What is left is generoulsy shared with the driver. I mean after taking 90% as “fees” you may as well claim that driver is getting 100% 🙂
Every driver has different types of car cost and features are different it is obvious. Stop making conflict of interest videos this is simple no big deal or story
As an uber delivery, people just don’t tip properly these days. They think we get most of the share for their delivery order, which we don’t, how is 50 cents or less a mile is fair?
According to a video I saw on YouTube, uber also owns the insurance company. Profit from the ride, plus Profit from the insurance = record profits for uber.
Is capitalism, take it or leave it, the reason that you’re been taken the van up. It’s because I went to the University and I went to College and you did not, the reason that you’ve been taken a Vanish up. It’s because you washed too many Netflix shows, and I do not watch. Netflix. Shows, the reason you’ve been taken advantage of it, because you’re allowing them to take advantage of you, I am totally Blind, and I control my destiny, therefore, I do not have this problem, why can’t you do the same?
After watching this video I’m requesting an account deletion. I don’t support drivers who do all the work to get 35% of the total fee I pay.
I’m done
Well if multiple people start requesting rides in the same area that can cause surge pricing to kick in on the app thinking they will need to find 6 drivers in that area.
Never taken one. I do not support their business.
I recently looked up the price to book ahead a ride at a specific time from A to B. I decided to wait and when I went to book a few hours later at that time it was 4 times the price! I changed the drop off location to across the street and it was back to x1 the original price.
Uber is thief, scam name is dynamic price
Tbh I can take a uber at night when there is little to no traffic and the cost is still high