Consumer Reports’ latest investigation found that ride-hailing companies Uber and Lyft use artificial intelligence to routinely charge customers dramatically different prices for the same ride with the median difference between the lowest and highest price groupings of about 50 percent. CR defines the same ride as a trip from the same starting point to the same ending point priced at almost the same time—generally within a few minutes of one another and, in many cases, within the same minute. Both apps also regularly entice customers to book rides by offering supposed discounts off what appeared to be inflated original prices, a practice that experts say not only is deceptive and manipulative but also may violate several states’ consumer-protection laws. We found that nearly 11 percent of all discounts advertised on both platforms fell into this category.
Uber and Lyft should not take consumers for a ride when it comes to the prices we pay! Join us in calling on the Federal Trade Commission and state attorneys general to investigate Uber and Lyft’s pricing algorithms, and hold them accountable if they find any unfair or deceptive practices.
PETITION TO THE FTC AND STATE ATTORNEYS GENERAL
At a time when companies are using algorithms and AI to set prices, we urge you to immediately investigate the use of artificial intelligence by Uber and Lyft that results in different customers paying different prices for the same route. A new investigation by Consumer Reports found that volunteer riders who looked up the same rides online saw the median difference between the lowest and highest price groupings of about 50 percent. CR defines the same ride as a trip from the same starting point to the same ending point priced at almost the same time—generally within a few minutes of one another and, in many cases, within the same minute. The investigation also found the companies offered supposed discounts to some consumers who ended up paying the same amount as someone else’s full price fare.
As more people rely on Uber and Lyft to get to work and may use them for urgent medical situations, we should not have to worry whether the price or discount we’re seeing is genuine or inflated. Please use your authority to investigate the use of artificial intelligence in setting fares, and hold Uber and Lyft accountable if you find any unfair or deceptive pricing.