Key facts
- Uber and Lyft were found to charge different prices for identical rides, according to a Consumer Reports study.
- The investigation revealed price variations of up to 50% for the same route requested at the same time.
- Consumer Reports questioned whether price differences are solely based on market forces, given the controlled testing conditions.
- Uber and Lyft defended their dynamic pricing models, citing factors like supply, demand, and real-time price fluctuations.
- The study also found that approximately 11% of apparent discounts offered by the companies were based on inflated original prices.
A new investigation by Consumer Reports has found that Uber and Lyft routinely charge customers different prices for the same rides, even when requested at the exact same time and for the same route. The study, published Tuesday, indicated that price variations could be significant, with some routes showing differences of up to 50% between the highest and lowest prices offered.
Consumer Reports conducted virtual ride requests for 30 routes across the US and also recruited volunteers for in-person tests in Portland, Oregon, and Phoenix, Arizona. In one instance in Kansas City, Missouri, a single route generated 29 different prices for 55 potential customers. In the Phoenix area, a test showed Uber prices ranging from $41.21 to $56.96 after discounts, a difference of about 38%.
While rideshare companies like Uber and Lyft utilize dynamic pricing based on supply and demand, Consumer Reports' controlled testing raised questions about whether all price differences are solely attributable to market forces. The report noted that about half of the time, customers were offered what appeared to be discounted fares, but approximately 11% of these discounts were based on what seemed to be inflated original prices.
Both Uber and Lyft challenged the findings, suggesting that the tests might have inflated demand and that prices change too rapidly to allow for accurate comparisons. An Uber spokesperson stated that trip pricing is influenced by numerous real-time factors, including the time of request and nearby events. Lyft's privacy policy suggests that factors like inferred user behavior, such as frequent airport travel, could influence pricing, though the companies maintain they do not consider protected characteristics like race or disability.