Why Your Uber and Lyft Rides Are So Expensive | WSJ

Rides may never cost what they did before the pandemic
Your average Uber or Lyft ride cost 50% more this summer than before the pandemic. But prices were inching up even before lockdowns began. Here’s what drove rideshare prices through the roof, and how the companies are working to bring them back down. Composite photo: David Fang/WSJ
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#WSJ #Uber #Lyft

[@pranavr1]

So Uber offers low prices to put taxis out of business then raises them up to replace taxis in the cab market.

[@sasnam]

Basically yea… they undercut their prices to shift attention to them and once competition is gone , they are the sole ride company so they can do whatever they want.

[@deepabharti7949]

Yellow Taxis were themselves a monopoly. That is the reason they couldn't compete.

[@phantomKE]

This was always the end goal.

[@Bonifeks51]

Same monopolistic strategies that have been used for over a century.

[@theeconomicsofthings9752]

My father works for Lyft. It’s not about the prices but the commission they take… they give me father $45 for a $110 trip.

[@makeitmakesense2616]

What city? The commission is not this high in new new Orleans

[@theeconomicsofthings9752]

@@makeitmakesense2616 NYC

[@handlemonium]

Yeah, I'd be willing to pay 25-35% more if I knew it went to drivers instead of fueling "general backend support" and corporate bonuses.

[@robertc6343]

Just a few days ago, Uber wanted 90$ for a ride from LGA to Park Slope, Brooklyn. I took a yellow cab and paid 50$. It’s crazy what Uber has become.

[@naznaz8278]

Driving for Uber/lyft not worth it at all

[@JJs_playground]

I still don't understand how ride-sharing companies are not turning a profit? when they don't own anything.

[@achilleasmanousakis4622]

It is simple... Someone needs to pay for those executives...

[@alvin3171997]

Using more money to invest in technologies and physical office assets, call it a financial loss and boom, no tax :)

[@richardxx0037]

do you know how much uber pays software engineer?

[@JRPGGUY]

Same

[@zinjanthropus322]

They rushed to build their products to get to market early so their highly inneficient and heavily outsourced infrastructure burns through a ton cash. Also they greatly subsidized rides so they could destroy the old taxi industry and buy extreme amounts of ads to keep growing and justify further investment. Under normal circumstances they should be dead by now.

[@DieselDucy]

The issue at hand is that fewer people are willing to depreciate their vehicle for peanuts. Basically Uber and Lyft have an ENTIRE fleet of vehicles that they have to pay ZERO maintenance on.

[@arandomhumanbeing2464]

As if maintaining a platform that big was inexpensive

[@railguncs]

@@arandomhumanbeing2464 if you compare sum the amount of maintenance of vehicles vs the maintenance of the platform, the second number is a joke

[@homewall744]

It's because the prior prices were fully subsidized by investors to get you hooked and then hoping you won't notice/change it. If prices were higher, then more drivers would join.

[@604h22a]

Excatly they drove the taxi companies out of business and now have a monopoly. Amazon uses the same technique

[@jammies6228]

We noticed

[@wolf3755]

And lower prices or subsidized prices would put the taxi industry out of business creating a monopoly for Uber where they can charge whatever they want

[@OM-bs7of]

You just put a 6 minute video into a single paragraph. Well done.

[@smoochie3331]

Switch to other service would be easy.

[@PG-tc6os]

The cut that these corporations take from their drivers is unreal.

[@AkakiPeikrishvili]

So why are they still working?

[@PG-tc6os]

@@AkakiPeikrishvili because most of them don’t know how much money they are losing

[@gabespalding8964]

@@PG-tc6os the drivers can't calculate their car's depreciation. Uber/Lyft are taking this

[@excusemehello5904]

I was driving yesterday in Los Angeles for Lyft. Passenger paid $70 for a ride, I got $37 from it!

[@PG-tc6os]

@@gabespalding8964 right on point

[@PG-tc6os]

Uber and Lyft will never be profitable to invest in their stocks. Their whole business model depend on drivers that are underpaid..

[@RoqueSantosJunior]

Are you stupid? Fuel price and lubricants is at least 45% of the cost of a transport operation.

[@alanmay7929]

There is also the danger related to passengers......

[@gj1234567899999]

Seems like it was always a dumb segment to begin with. They are competing with taxis. Taxis were never a rich industry to begin with.

[@PG-tc6os]

@@RoqueSantosJunior that is correct. That’s why this business does not make sense to work for them or to invest on it.

[@TheEvilistic]

When your competition is welfare ...maybe you're not paying your people enough...just a thought

[@Shootskas]

Exactly, most drivers quit driving during the pandemic because they were making more on unemployment benefits. That's pathetic.

[@riversmakris]

Uber, Lyft, Door Dash and UberEats in the USA are expensive and ridiculous af- compare to Mexico you're getting robbed with said prices and the worst part is they charge stuff out of nowhere.

[@jakovmujan1498]

Theres probably 700 pounds of cocaine in that Mexican uber u payin 2$, just to trick the police

[@JRPGGUY]

Don't blame the drivers. Uber and lyft set the prices then takes upwards of half. Wished there was an alternative.

[@michellejones8144]

That’s exactly what I came here to say!!!

[@ptm374]

Back to taxis?

[@nobodynoone2500]

Don't work for predatory companies. The drivers are supporthing them. TOTALLY PART OF THE PROBLEM.

[@gzfashions]

I’m an Uber Lyft driver. We don’t get paid enough when you consider gas and all the wear and tear. Now on the other hand Uber and Lyft companies are getting paid way too much just by providing the platform.

[@gzfashions]

The only way to make it worth it is if you drive the most random hours of the day like 4-8 am or 8-11:30 pm you must also drive an efficient vehicle i.e. Honda Toyota Subaru etc… you bet not buy a car expecting to sell or trade in for a fair value. Those miles wreck a cars Value.

[@homewall744]

Try to compete, then if your "just" notion had any validity whatsoever. Did you take big risks? Find investors? Build, update and release the software on the servers, in the phones, etc.? Work with government tyrants the world over? Advertise? Find you and all other drivers? Pay you and all other drivers?

[@beyondtheclouds95]

neither company is not even close to profitability, expect them to increase commissions or charge customers more

[@mysteriousjz]

Then why would you be staying put?

[@Shootskas]

If I had more technical know-how, I would love to create a service that connected drivers and passengers.

[@Sohail-zl2xw]

I'm an Uber driver and A ride from San Francisco airport to San Francisco downtown costs the passenger over $70, but the driver will receive $20 to $35. considering gas, mile, and time we don't get enough pay. and Uber gets over 70% all the time! if someone needs pictures, videos of the same rider and same driver, I will be happy to share them.

[@alanmay7929]

People should just use more fuel efficient vehicles.

[@Acer113]

@John Connor it might have been a bit more fair if Uber paid for the car and /or fuel expenses…

[@jermainec2462]

@@alanmay7929 buy them more efficient vehicles mr smartass ... And even with the more efficient vehicle that vehicle still requires maintenance and your maintenance goes up being a full-time Uber driver

[@seans9149]

I just saw a hiring sign on chipotle window $20.50 an hour in San Francisco. Also, you get free food. you have a choice, please stop

[@seans9149]

@John Connor These uber and Lyft drivers will never be happy with how much they will make. I just saw a hiring sign on chipotle window $20.50 an hour in San Francisco. Also, you get free food. they have a choice, all they do is complaining.

[@iououu]

The way they uncritically blame unemployment and not the profit incentive these companies have to keeping prices high nor the fact that drivers don’t offer same benefits like for full time employees

[@siamimam2109]

Uber/Lyft takes 50% cut these days! It used to be 35-40%! So when they get rid of the promo, a lot of drivers will go back to food delivery! Driving passengers around is just not worth it anymore

[@simpletongeek]

I really don't see why they take more than 30%. All costs are paid by drivers, not company. Charge more if needed, but to take more than 30% and claim they are paying extra for "driver incentives" is simply wrong!

[@DeltaFlare987]

This! One customer this week i had was paying $11.06 and I ended up with only $5.08 for the trip

[@AlexWedi]

These 2 companies need to get smaller cut than the 25% they taking from drivers. The drivers are paying for everything and those vultures taking big chunk already

[@homewall744]

If the drivers pay for everything, why are they so ignorant as to work for them and not just compete directly? Oh yeah, because reality and your dizzy thinking aren't aligned.

[@Striker50_]

Uber takes 25% PLUS the 2-4 additional fees they charge the passenger that the driver doesn't get a cut from

[@mysteriousjz]

Unfortunately, businesses exist for profit. Traditional car services used to charge as much as 40% and they still do

[@lauracarmody4459]

I took a Lyft on LI and there was such a shortage of cars I had to spend an extra 10.00 to get “priority” pick up. The trip cost me $25.59. The driver received $6.19. It was 1.6 miles.

[@FinancialShinanigan]

Employee parking used to be $12 but now $20. Driving is more expensive now.

[@jacobgoldenofficial4321]

Gas is $4.00 per gallon Cars are very expensive What do you expect? 😒😒

[@trentclark2061]

I could've sworn I saw this exact article on CNBC a week or so ago?

[@leonardofonseca1844]

yes you did. kzbin.info/www/bejne/g3bOZK2Dnc2fqq8

[@PG-tc6os]

Drivers are going to come back until these corporations pay more simple like that.

[@yonathan8520]

if you want to be cheap, drive yourself to the airport or pick up your own food. The whole point why it’s expensive is because you’re using someone to help you so if you didn’t want to pay, then don’t use the service.

[@Striker50_]

How much is airport parking? And gas? And waiting for a shuttle to take you to your terminal?

[@xtrey19x]

@@Striker50_ If your time is so important that you can’t wait for the shuttle then pay the asking price it’s that simple.

[@Striker50_]

@@xtrey19x But again, you didn't answer my question: how much is it to park at an airport daily? It's cheaper to rideshare than to leave your car at the airport lot

[@lancehsparks]

the typical lazy worker argument, nice wsj. Explain why then that employment didn't rebound in states that cut off their unemployment insurance earlier then?

[@flashoflight8160]

Lazy reporting here too. The crux of the problem is the Uber/Lyft cut, not supply/demand.

[@michaelcheng4985]

I do understand the last point they make - the public is up in arms about driver's getting paid fairly and treated fairly, but then are angry at the rise in prices - can't have your cake and eat it too.

[@TwoNote]

In NYC many cab drivers are working for car service bases. They provide a more sustainable and lucrative model for drivers. Albeit not with the same reach and market. This is why I don't even try taking an Uber and just pay my flat fee at anytime of the day to go to JFK.

[@Mental_Egg]

Let's talk about both companies are multi-billions and their C suit is racking in the 💰... kind of odd that was left out of the report.

[@isaacyo]

That’s unethical they are milking out of the pandemic.

[@MrBemnet1]

lyft and uber pay 0.60 cents per mile + minimum wage while you are driving. 0.60 is not far from the irs rate of 0.54 /mile so you are basically paid minimum wage while driving. There is no payment while waiting for a ride and driving to your pickup spot.

[@seanchen9265]

If drivers are united, they can hire freelance app creator and create more local-community app like uber. This how we will going to drag down price and drivers are paid more.

[@alvin3171997]

You can’t create an app like Uber with freelance lol, there are advanced tech working behind the scene. But yeah, drivers can just create a riot to add pressure.

[@veerjaggy1837]

They are doing it in different parts of the country. New York drivers are forming a co-op. Restaurant owners in a city in Iowa formed a co-op called Chomp that is actually giving lower commission to the owners and better wages to the riders. I don't know about lyft... But uber is gonna get screwed big time... Until and unless the radically shift their core business to something else. The philosophy of bigger is better don't work in the driving industry

[@seanchen9265]

@@veerjaggy1837 that's the way ! Just a matter a time, it will be more community based compare to company based. That's how community based delivery/driver can unite and take down a company

[@michellejones8144]

Uber and Lyft initially claimed that they would take 25 percent of fares. They are now taking anywhere from half to three quarter. A passenger may pay $15 for say 5 miles and at the end of the trip, all I get is about $6 or $8. They take the majority. It is so sad. We have to service our own cars, deal with extremely rude passengers and the list goes on. Uber and Lyft must be blamed although Lyft is doing so much better. Their bonuses really looks good and go a far way. There is an ease driving for Lyft than for Uber. Lyft match drivers with close passenger but Uber will send you 25 minutes long yo pick up a passenger who is only going 2 minutes down the road, pay $3.00.

[@Striker50_]

Uber used to only take 20% up until 2016

[@TMeyer-ge5pj]

I live in Minneapolis, and it costs 10 dollars to go to the grocery store 1 mile down the road...

[@mikey3672]

I am curious why uber and lyft can't be profitable. The only thing they have to supply is software maintenance and customer support. They seriously should increase their efficiency and not just keep expanding for the sake of expanding.

[@Mico605]

Because there are always 3 passengers in the car. You, the driver and a middleman called Uber and Lyft.

[@carlastouder4059]

I live in kentucky and work 15 to 20 minutes away from my home and I take uber because sometimes it's cheaper then taking Lyft is more expensive because of rider shortage. It's a hook because we need a ride.

[@avicohen2k]

The main draw to use them is the price. When visiting the us I almost exclusively used uber because it was just half the price of a normal taxi. If it would cost the same or similar, I'll just get in to whats available. Its simple economics.

[@kw5961]

I just started working for Lyft, its really the tips that help.

[@collinwimbish4516]

the point was to destroy labor laws and the functional taxi market and then raise prices after you have a monopoly

[@EnronnSierra]

I do this thing called public transportation.

[@cddagr]

The way I see it, as they fase out the discounts, they become more profitable, the drivers hopefully will get paid more fairly per ride instead of chasing bonuses, the people can't afford the rides will go back to using the public transportation system when available, solving the public transportation lack of passengers issues all together. Send like a long term win-win-win situation

[@Striker50_]

7 year driver here (Since 2014) Driver pay rates have been cut by Uber & Lyft claiming it to be temporary. Rates have never increased after said cuts. Only down 👇 Per mile in Los Angeles in 2014: $1.28 Per mile in Los Angeles in 2021: $0.64 Pay rates have been cut, while Uber & Lyft are now keeping more of the profits. When I started, Uber only took 20%. Now it's EXTREMELY common Uber takes 30-40% Uber charges passengers MUCH bigger Service and Booking fees, which goes 100% to Uber. The driver doesn't get a cut of this like before

[@mysteriousjz]

Well! You have been with them for 7 years, then they must be doing something good for you? Or this business must be working out well for you?

[@alparslankorkmaz2964]

Nice video.

[@phillipso.edwards8227]

The philosophy of the rich and the poor is this; the rich invest their money and spend what is left while the poor spend their money and invest what is left .

[@KurtESao-gh7ci]

Investing in today is priceless because tomorrow is not promised. Trading bitcoin, gold, silver, crypto to secure a better future.

[@briane.robertson489]

Interesting most people don't understand that the market moves and tends to be misled in facts like this and always depends on in the bank very bad idea.

[@oscarr.retana3552]

It's nice to hear people talk about investment, because investment always beat cash.

[@EricajBlagg]

As a newbie investing in crypto currency would be best for you. I know of an investment manager, Mrs Marie. She's an expert in crypto trading investment as you don't av to undergo any stress in the trade, she manages my trading .

[@raymondc.jackson8218]

I lost €12000 carelessly trading on a platform and was referred to Mrs Marie, she recovered the loss and made an extra profit of €7500

[@user-ej4dy8bh4t]

and the lyft and uber drivers get 1/3 the price of the ride

[@roddyrod583]

Online language classes LOL

[@Beachdudeca]

Uber increased how much it kept, but reduced driver pay so it’s insane to take passengers, plus other jobs are safer

[@stepone3022]

Does anyone have any opinion on how this increases in uber & lyft price would affect normal cabs if they’re still around? Just wanted to know what others think!

[@sasnam]

I think it wouldn’t do much. Uber and Lyft have become household name at this point that most won’t even switch cause they’re not familiar with other ride service. Similar to how majority of people only use Apple or use google as search engine. Secondly, despite the prices , taxis just don’t have the technology capability of Uber/ lyft. Their apps can instantly give you the nearest driver, whereas taxis you would have to stumble upon one. Also taxi people like to congregate in few locations notably airports and hotels Whereas Uber are ubiquitous

[@Vinny6962]

From JFK To Midtown Manhattan that’s $100 plus…. From JFK to Jamaica ave is already $50

[@VicharB]

Take a bus or express train, if there is one. 😜 On a serious note I am guessing it's the Company cuts/commissions, while workers surely getting much smaller cut.

[@gilmore6168]

If companies can’t pay benefits to thier employees. They better close.

[@benjamindover4337]

You'd have to be phenomenally stupid to drive for these services. Drivers have subsidized riders and carried the costs all the way.

[@kingramseyii3686]

I hope they don't come down! Shareholder here!

[@bowei4237]

We are now at the point where a yellow cab becomes much cheaper than a uber ride.

[@SelfEducationMethodologySEM]

👋👍 We should improve and educate ourselves to succeed! Make Yourself Proud!

[@need4speed162]

Pay drivers better, y'll screwing us drivers by taking 50-65% commission

[@pppaaa5399]

I took a Uber from NYC to NJ, costed me $190, so expensive!!!!!!!!!!

[@UHaulShorts]

Replace surge pricing wit higha pay 2 avoid unionizing picketang

[@greenmanmars9520]

You have to pay the driver’s hazard pay because of delta.

[@SoloJedi_]

#1 reason why Uber and Lyft need to be regulated (only allow certain amount to drive in the city). When do Yellow cabs surge?

[@instagramTurkllc]

They cut all my bonuses the past 3 weeks which cut my driving time in half

[@proberts34]

It's the circle of life in action. To get rid of a mouse, get a cat. Then to get rid of the cat, get a dog. Then a lion. Then an elephant. And to bring it full circle, to get rid of the elephant. . .get a mouse. Taxi services had a monopoly, then ride share services broke up their monopolies, but the drivers got screwed. Tesla FSD cars will break Uber and Lyft, and we'll have to see what comes after that.

[@EddieLeal]

Drivers and not seeing much more than before. A good chunk of the earnings still going to the platform companies.

[@albear972]

Well, they succeeded with phase 1 of their plan. Sell your services for unbeatable prices killing off taxi companies. Phase 2, now that the competition is dead raise prices through the roof. Seriously. One time Uber wanted to charge $175.00 for a 28 mile ride to the airport (Burbank to LAX) at 4:15 AM on a Saturday morning. Seriously? Ummm, NO! We ended up just driving ourselves and paying for long term parking at the Parking Spot the 5 days we were gone.

[@hassanmohamed5472]

Charging more for customers and keeiping 75 percent and giving ony drivers 25 p or 20 percent

[@kevineusebio]

This video has very loud on rear left and rear right speaker on 5.1 surround sound. It's weird I feel like the narrator is speaking to me from behind and then it switches to front firing speakers on other talking heads lol

[@SomeGuyWatchingYoutube]

Why drivers don't get paid anything but the prices are still increasing >.>

[@jorgerangel2390]

They are that expensive because the business model is not working, and never has been, the extra money is so the can say that their companies are not sinking as fast as predicted.

[@boedillard8807]

I used them for a few years. I'm back to using a cab because they are too expensive and unreliable in LA.

[@theramblingzone]

The Rideshare Guy hasn't actually driven for Uber or Lyft for YEARS. He's just a pr guy at this point.

[@howardkoor9365]

Its too bad that the rates are so high

[@mauricio8365]

invest in public transportation and forget about these companies!

[@MiamiMillionaire]

i only use good old taxis

[@TJW68]

The drivers will come back when the compensation increases markedly. Forget bonuses, raise the mileage rates.

[@yonathan8520]

this report is so wrong since I’m an uber driver too and have lots of uber driver friends. The reason why most people didn’t come back is because Uber, Lyft, and other delivery services didn’t pay the driver enough and it doesn’t worth of the time, not the unemployment insurance.

[@deliveryboy90]

Agreed, I switched over to Amazon Flex from Uber, on some days I make 18 -22 an hour without having the liability of a passenger in my car, and a guaranteed wage before I accept a job.

[@nawarajkarki4]

Not mine though

[@starcrib]

Everyone I know is slowing down on rides. Just kinda using it for hard to get jaunts. 🐩💨

[@farhanhaider5652]

we drivers dont even get 50% off that

[@yooperlite]

If you think about it, there is actually no reason for the price to go up. Ok sure, the demand is high, so you might longer to get a ride.

[@MillionaireMindsetClub]

Still not nearly as expensive as the yellow cab taxi's..

[@hou5eheadjason]

its come down to just paying more , gas is expensive , its almost worth it to stay home some day instead of filling my tank because it would take 5 hours of driving to pay to fill my tank

[@Shootskas]

It's so expensive and yet they pay the drivers the same amount. When the price is raised, that just means Uber and Lyft are taking a larger cut. Drivers need to stop putting up with this scheme. They barely make enough to cover their gas.

[@aland9328]

in Mexico,didi is cheaper and gives coupons

[@TPM188]

I don’t understand. Google can easily make a cheaper version to compete.

[@FGOKURULES]

WHy so many TESLA's being shown?

[@AM-xg4vl]

Why are the drivers being blamed? The commissions from drivers are sky high!

[@havig6936]

Prices are up for customers due to the fact that Uber and Lis are charging more for booking fee service fees and nothing for the drivers the drivers get the same pay as before not one penny more that’s strange right where the ones working and then we can all the money went to extra drivers the truth

[@Striker50_]

Exactly, driver does not get a cut of the booking fee or the service fees

[@nerd23x]

Bro, US everything is so expensive

[@Joeswing77]

Uber sign-up process is difficult now. they do a background check that never gets finished so they are turning drivers away. The shortage is due to Uber itself.

[@ogace9441]

This is why I don't feel bad about people disputing charges from doordash, uber, and etc. They deserve to get scammed.

[@mibox8302]

TLDR just use a cab or drive your own car

[@crazeazn]

Houston is the 4th largest city. WSJ get your facts straight when discussing big cities vs. small.

[@arbaz79]

I'm Texas or all of America?

[@crazeazn]

@@arbaz79 All of the America.

[@cubitme]

It's the same with taxi before Uber. We human if have too much monopoly (control) will try to rip off in every subtle way. In the past we feel that cabbies are not to be trusted, poor experience rides without much choice other than public transportation. Now the cabbie service diminished, Uber/Lyft will take over the role and the cycle resume.

[@peekaboo7958]

I don't get it, why americans don't use scooters or bicycles for delivering food? it's way cheaper

[@Kevin5471]

It’s all about company growth at first. They want people to hook on their services and monopolize the markets in order to dictate price later on.

[@hando-]

Why aren't you guys talking about the full-scale economic crash that's right around the corner?

[@Aschraffff]

Sooo back to Taxis?

[@dkcmusic]

Just call a cab service. It’s cheaper

[@Striker50_]

It's definitely not. And they take an hour to arrive

[@Babanla420]

Ok. Let’s hear from the drivers.

[@leroyhill7117]

Lol no they were subsidized to drive taxis out of business now they succeeded and have a monopoly (UBER/LYFT ) and have to make a profit(between insurance and pay rate plus cost of driver/customer)

[@user-qi9wz6iu9x]

Ok we don’t wanna pay high cost for moving. Instead we’ll use other method such as train, taxi, bike and so on.

[@williamerazo3921]

Why the F I want a language class if I’m American English speaker

[@sakibkhan-qo5lg]

Better to take cab 🚕