Ever order an Uber or a Lyft and wonder how the app landed on your price? A new Consumer Reports investigation found that someone standing right next to you, requesting the same ride at the same time, could be shown a very different price\u2014and most riders would never know.<\/p>\n
Consumer Reports spent months testing Uber and Lyft prices nationwide. The investigation used riders who requested a trip from the same starting point to the same destination at almost the same time\u2014generally within a few minutes of one another and, in many cases, within the same minute.<\/p>\n
The result? Many riders saw very different prices.<\/p>\n
\u201cWe had about 175 people from across the country look at different prices for the same ride at the same time,\u201d said Derek Kravitz, Consumer Reports investigative reporter. \u201cPeople do get different prices for essentially the same ride.\u201d<\/p>\n
In one test near Florida\u2019s Gulf Coast, two riders looked up the same ride between two towns at the same time. One was quoted nearly $95. The other would have paid about $66 for the same trip, at the same time, on the same app\u2014a difference of almost $30.<\/p>\n
The investigation also raised concerns about discounts and crossed-out prices. Consumer Reports found that in some cases, the higher \u201coriginal\u201d price did not appear to be a real starting price, meaning riders may think they\u2019re getting a deal when they\u2019re not.<\/p>\n
\u201cWhere you might see a ride discounted from $80 down to $60\u2014that\u2019s not a real discount,\u201d Kravitz said. \u201cThat\u2019s fictitious pricing.\u201d<\/p>\n
Uber and Lyft strongly dispute Consumer Reports\u2019 findings and deny setting prices based on who a rider is. The companies say fare differences reflect a live marketplace influenced by supply, demand, traffic, weather, and other factors that can change by the second. Both companies also deny offering discounts that weren\u2019t real.<\/p>\n
Consumer Reports also found that the companies may be keeping a larger share of each fare, between 43 and nearly 50 percent. Drivers interviewed by CR said they feel squeezed by the growing gap.<\/p>\n
\u201cThey know they can manipulate us, and they basically take advantage of that,\u201d said Portland, Oregon, Lyft driver Mario Antunez.<\/p>\n
So what can riders do? Consumer Reports says there are limited options, but recommends comparing prices between Uber and Lyft before booking, being skeptical of crossed-out \u201cdiscount\u201d prices, and considering taxis, public transit, or other transportation options when available.<\/p>\n
Uber says some crossed-out prices are \u201chistorical\u201d comparisons rather than discounts. Both Uber and Lyft maintain that the share of fares they keep is significantly lower than Consumer Reports found.<\/p>\n
Meanwhile, some states are beginning to address concerns about pricing practices. Maryland and Connecticut have enacted restrictions on surveillance pricing, while California, Pennsylvania, and New York are considering broader bans on the practice.<\/p>\n
Consumer Reports says that until there is more transparency around ride-share pricing, comparison shopping may be one of the best tools riders have to avoid paying more than necessary.<\/p>\n
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