Rideshare Roulette – Do You Know What Surveillance Pricing is?

Unlike traditional taxis, which charge metered rates, Uber and Lyft use dynamic pricing to calculate fares up front based on shifting rider demand, traffic, and car availability. But the report suggests the rideshare companies are also analyzing personal data to predict how much a given customer may be willing to pay—a tactic called surveillance pricing. Uber and Lyft deny the allegation, but acknowledge using customer data to offer personalized discounts. The report’s authors say that these discounts are sometimes applied to inflated base fares to deceive customers into thinking they’re getting a deal. Both companies reject that claim as well.

Another study published last year found that only one in six riders compares prices across Lyft and Uber, with prices differing by an average of 14%.