Artificial intelligence now shapes many parts of the auto sector, from makers exploring AI to adjust charges to firms targeting AI systems with ads or nations using AI for traffic enforcement. Rideshare firms have joined this trend, and Uber is not alone in seeking to gather training data from driver vehicles.

Uber and its competitor Lyft both rely on AI for fare setting, and a recent Consumer Reports analysis sheds light on the process. Editors at CR and company spokespeople differ sharply on how to interpret the results and on the study methods used. CR volunteers compared prices for identical routes requested within six minutes, often in the same minute. The median gap between the highest and lowest quotes for the same trip at nearly the same time reached 42.4 percent. Uber replied that prices reflect market conditions at the precise second of each request, so even brief intervals can produce shifts from changes in supply or demand.

CR noted that many variables such as driver availability and traffic were not measured because the firms hold that data privately, yet the organization maintained these factors did not alter its conclusions.

How Uber and Lyft Describe Their Pricing Approach

Supply and demand clearly influence costs for goods and services, and rideshare operators attribute fee differences to those forces. CR remains unconvinced. The study suggests Uber and Lyft set prices partly on elements unrelated to basic economics. Personal data collected from phones, including past ride patterns, may play a role. The firms do not disclose exactly what information they use, so the public must accept their assurances that fares ignore gender, income, race, and similar traits, even though the technology to infer such details exists.

Uber holds a patent for accessing phone sensors to study walking speed and gait, data that can also indicate gender and potentially lead to higher charges for women. Ride history can reveal personal details too, such as identifying a single working parent from repeated destinations. The study found no direct proof of biased pricing but confirmed the capability to gather such information.

Rising Company Shares and Questionable Discounts

The month-long review also examined how much of each fare stays with the platforms. Between 43 percent and 49.5 percent of fares now go to the companies, while driver portions have declined. Uber took roughly 32 percent in 2022 and reached 42 percent by late 2024. CR links the rise in algorithmic pricing to these larger cuts and higher profits, though correlation alone does not prove causation.

Discounts appear more frequently at both firms. Despite company statements to the contrary, CR observed offers that reduced apparently inflated base prices. In one case a rider saw an $82.08 quote drop to $65.95 with a discount, while 40 others received quotes near $65 for the same route. CR concluded the higher starting figure made the discount misleading. Both companies have acknowledged using rider data to shape these offers, though the distinction from data used for base fares remains unclear.