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Uber CEO Shocked by High Prices of His Own Service: Fares Rise Faster Than Inflation

The general manager of Uber is not very familiar with the prices of his own service. During an interview with the American magazine Wired, during a press conference organized by the VTC company, the journalist asks Dara Khosrowshahi to estimate the price of the trip he has just made to get to the meeting. A journey of “3 miles”, or 4.5 km, in New York.

“20 dollars”, replies the boss of Uber. False: “50 dollars”, retorts the journalist. An amount that visibly surprised and shocked Dara Khosrowshahi: “Oh my god. wow! he exclaimed. His interlocutor also specifies that it was his second attempt, since a few minutes earlier, the race cost him more than 70 dollars.

Prices that have risen faster than inflation

The chief executive, who took over the helm of Uber six years ago, tried to justify the high fares with inflation. “Everything is more expensive,” he said. Inflation is now part of our daily lives. With Uber, the vast majority of your fare goes to your driver. The weekly earnings of our drivers have increased by 40-50% over the past four years, because it is the cost of time and the cost of labor. I think it’s positive. »

According some reports quoted by Wired, Uber fares have risen at least four times faster than the rate of inflation and they have exploded in New York. And contrary to what Dara Khosrowshahi claims, these price increases have benefited the company more than the drivers, according to a study by l’UCLA Labour Center. “Uber and Lyft took a bigger share of passenger fares — and gave drivers a lower percentage — in 2022 compared to 2019 when the city’s minimum wage standard went into effect,” UCLA said.

In January, VTC platforms and representatives of independent VTC drivers signed an agreement on the minimum income per trip. It sets the minimum net income per trip received by drivers at 7.65 euros, “regardless of the application they use”, Uber said in a press release.

2023-08-03 10:49:00
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