Uber, Lyft accused of charging different fees for the same rides at the same time

Uber and Lyft charge different prices for the same routes booked at roughly the same time, says a leading consumer group.An investigation by Consumer Reports found that fares on the same route varied by as much as 163% in price in a way that goes beyond dynamic pricing, which is when fares fluctuate based on supply, demand and other market conditions.Consumer Reports tested 30 routes across 17 states by having volunteers input start and end points to check prices without actually ordering a ride.

All 30 routes entered into the ride-hailing apps yielded at least two different price clusters, the study found.Business Uber and California personal injury lawyers are locked in an ugly contest over dueling ballot initiatives while the ride hailing giant faces a big threat from autonomous-vehicle operators.The median difference between the highest and lowest price clusters for the tested routes was 50%.

One route in California varied in price by 55%.“Experts who reviewed our findings said that, while they expected to see evidence of dynamic pricing, they didn’t expect to see such large price differences,” the report said.

“Algorithmic and AI-driven pricing tactics like those used by Uber and Lyft are attracting growing attention and criticism.”Both ride-hail companies strongly disputed the report’s key findings and its methodology.Uber said the investigation was fundamentally flawed and did not take into key variables such as the distance a driver has to travel to pick up the customer.

The company said it does not engage in surveillance pricing, nor does it personalize fares for individual customers.Business Drivers in Massachusetts for ride-hailing apps such as Uber and Lyft have become the first in the nation to certify a union.“Consumer Reports treats trips with the same pickup and drop-off points as identical.

They are not,” said Uber spokesperson Ryan Thornton.“In a real-time marketplace, a trip is defined not only by where it starts and ends,...

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Publisher: Los Angeles Times

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