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TRENDING NOW IN BUSINESS

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BUD LIGHT DISTRIBUTORS NO LONGER EXPECT SALES TO RECOVER FROM...

UBER CEO STUNNED BY INSANE FARE CHARGED FOR 3-MILE RIDE IN NYC:...

MIAMI'S GROWING PILES OF TRASH, OVERFLOWING SEPTIC TANKS CAST...

Business


UBER CEO STUNNED BY $52 FARE CHARGED FOR 3-MILE RIDE IN NYC: ‘WOW!’

By Shannon Thaler

August 1, 2023 | 8:49pm

Uber’s loathed surge pricing left even its own CEO with sticker shock.


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A journalist who took an Uber from downtown Manhattan to interview the company’s
boss Dara Khosrowshahi on the West Side paid $51.69, including the driver’s tip,
for the 2.95-mile trip.

“Oh my God. Wow,” Khosrowshahi exclaimed when he was shown the eye-popping fare
by Wired editor-at-large of Steven Levy, who revealed their conversation
Tuesday.

In his sitdown with Khosrowshahi — which happened in May at Uber’s annual
product event Go-Get — Levy asked the executive to guess the cost of the trip.

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“Twenty bucks,” ventured Khosrowshahi, whose company announced it turned its
first-ever operating profit when it released second-quarter earnings Tuesday.

Levy informed the ride-share boss how far off he was and told him: “Five minutes
earlier, the price was $20 higher.”

Khosrowshahi attributed the head-scratching fee to “surge pricing,” according to
Levy.

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“A surge makes no sense,” the journalist replied. “It’s 10 a.m. on a sunny
weekday, and it’s not like the president’s in town.”

Uber CEO Dara Khosrowshahi was stunned to find out that a 2.9-mile ride in NYC
cost $51.69, including tip. He blamed the pricey fare on surge pricing and
inflation.Getty Images

“Everything is more expensive,” Khosrowshahi said bluntly, citing that the
effects of inflation have caused rates to go up along with the cost of time and
labor.

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However, a report by Forbes concluded that Uber’s prices in the US have
increased at four times the rate of inflation from 2018 to 2022.

Fares rose a total of 83% over the nearly four years ending in Q3 of 2022,
according to Forbes.

In the past, Khosrowshahi has attributed soaring prices to a shortage of drivers
during the pandemic, though Uber reached a record-high 5 million drivers in
August 2022 — up 31% from the year prior, the company noted in its Q2 2022
earnings report.

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Despite claiming that Uber prices have risen with inflation, a report by Forbes
said Uber rides surged at four times the rate of inflation over a period of
nearly four years between 2018 and 2022.Anadolu Agency

The Post has reached out to Uber for comment.

The higher prices may have played a role in Uber’s stellar second-quarter
performance.

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The company recorded a profit of $394 million in the three-month period ending
June 30 — a massive improvement from the $2.6 billion loss it posted this time
last year.

Operating profits came in at $326 million for the quarter — the first profitable
quarter since Uber’s founding in 2009.

The company predicts it will see additional operating profits by the end of Q3,
on Sept. 30.

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Meanwhile, revenue rose 14% year-over-year, to $9.2 billion, and total
transactions on its app grew 16% from 2022, to $33.6 billion.

On Tuesday, Uber released its second-quarter earnings, posting its first-ever
operating profit, which came in at $326 million.Getty Images
What do you think? Post a comment.

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Despite the positive figures, Uber’s stock fell nearly 6% Tuesday.

The company also announced that Uber’s chief financial officer, Nelson Chai,
will leave the company on Jan. 5, 2024, and “a search for his replacement is
underway.”

Chai, who stepped into the role in 2018, led Uber’s initial public offering in
2019, and oversaw the company’s $2.65 billion acquisition of Postmates in an
all-stock deal in 2020.


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Filed under corporate earnings ,  inflation ,  ride sharing ,  stocks ,  taxi
drivers ,  taxis ,  uber ,  8/1/23
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