How Uber uses AI to charge you more
Business Insider examines how Uber's shift to algorithmic up-front pricing has led to significant fare increases for riders. The article questions whether AI is being used to maximize corporate profits at the expense of consumer affordability.
Why it matters
It highlights the growing tension between algorithmic pricing models and consumer transparency in the gig economy.
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.
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