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Lara O'Reilly takes you inside the stories shaping #marketing. #cmo #marketers 1 ਮਿੰਟ 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 "I lost $180,000 in Wall Street retirement savings. Now, I drive Uber and Lyft 75 hours a week": https://bit.ly/46QJryc And "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 Business Insider is a global newsroom covering business, technology, innovation, and the economy. Visit our homepage for the top stories of the day: https://www.businessinsider.com/?utm_source=youtube Sign up for our newsletters: https://www.businessinsider.com/subscription/newsletter?utm_source=youtube Find Business Insider on Facebook: https://www.facebook.com/businessinsider ... on Instagram: https://www.instagram.com/businessinsider ... on X: https://x.com/BusinessInsider ... on TikTok: https://www.tiktok.com/@businessinsider How Uber Uses AI To Charge You More | So Expensive | Business Insider
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