Blue-city riders hit with priciest Uber fares as LA, NYC costs soar past comparable metros, data shows

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Blue-city riders hit with priciest Uber fares as LA, NYC costs soar past comparable metros, data shows

Nationwide, Uber estimates riders pay over $2 billion a year in extra costs tied to local regulations

By

Amanda MaciasFox News

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EXCLUSIVE: Riders in blue cities like Seattle, Los Angeles and New York are being hit hard with some of the highest rideshare prices in the nation, according to new data from Uber.

The information, shared exclusively with Fox News Digital, compares cities with nearly identical costs of living and shows how dramatically Uber fares diverge between them.

WEAKENING INCOMES ADD NEW STRAIN TO HOUSEHOLDS ALREADY HIT BY HIGH PRICES

In Los Angeles, for instance, riders pay on average 1.8 times more for an Uber than riders in Miami, even though the cities have similar living costs. New York City shows the same trend, with riders paying 1.4 times more than those in Honolulu.

A scatterplot chart showing the cities with high regulatory burdens and the average fare for an Uber ride.

Uber fares in the red-highlighted markets are, on average, 1.6 times higher than in markets with similar costs of living but less burdensome regulations. (Uber)

Adam Blinick, Uber's head of state and local public policy for the U.S. and Canada, told Fox News Digital that Uber wants to remain "an affordable and reliable option for everyone," but in many cities that goal is being undermined.

"In some places, compounding layers of regulation, local fees, rigid pay rules and government insurance mandates, have pushed rideshare prices well above what they are in cities with comparable costs of living," Blinick said.

uber app open on the dashboard of a car

In New York City, riders pay 1.4 times more than counterparts that live in a comparable cost of living city. (Lokman Vural Elibol/Anadolu Agency/Getty Images)

"This unfortunately results in higher prices for riders and fewer earning opportunities for drivers," he added.

NEARLY 1 IN 4 AMERICAN HOUSEHOLDS LIVING PAYCHECK TO PAYCHECK, REPORT REVEALS

Nationwide, Uber estimates riders are now shelling out more than $2 billion a year in added costs driven by local regulations. Nearly 30% of all U.S. trips include at least one extra fee, and that number keeps climbing. 

A person orders an Uber ride from the app on their phone.

Almost 30% of Uber trips in the U.S. involve at least one extra fee in the fare. (Sebastian Gollnow/picture alliance/Getty Images)

Seattle offers a clear case study of how these policies can backfire. 

In 2020, the city of Seattle enacted a pay standard aimed at boosting driver earnings. But as prices climbed to absorb the higher labor costs, demand collapsed, leaving the policy to backfire on both riders and drivers. According to Uber's data, Seattle is now the most expensive market in the country for an Uber trip.

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Uber argues that unless cities rethink the regulatory layers driving up prices, more markets could soon follow Seattle’s path, where riders pay more, drivers earn less and the system itself becomes harder to sustain.

Amanda covers the intersection of business and geopolitics for Fox News Digital.

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