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Uber took bigger cut of fares to grow profits, study says — with Seattle hit hardest
The report attributes the shift to the company’s alleged move to "upfront pricing," which reportedly sets fares based partly on what riders are willing to pay.
SEATTLE — Uber is facing fresh criticism over its pricing practices after a new study claims the company has dramatically increased its profit margins by using AI-driven algorithms to raise fares and cut driver compensation. The Columbia Business School study, authored by Professor Len Sherman, found that Uber increased its share of trip fares from about 32% in 2022 to more than 42% by the end of 2024. Sherman pushed back on Uber’s previous claims that Seattle’s high fares are largely due to local regulations, including the 2020 law establishing minimum pay for rideshare drivers and the 2022 “PayUp” ordinance extending similar standards to app-based delivery workers.
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