Ending Soon! Save 33% on All Access

How Uber Drivers Might Be Ripping You Off Have you ever wondered why your ride cost more than you thought it should?

By Lydia Belanger

Opinions expressed by Entrepreneur contributors are their own.

Getty Images | Andrew Burton

No, you're not being paranoid if you suspect that an Uber or Lyft driver canceled your ride request because of your race or gender, took you for an unnecessary detour or failed to report your ride had ended once you arrived at your destination. The results of a recent study suggest that your distrust was warranted.

Researchers at MIT, Stanford and the University of Washington recently found that black passengers hailing UberX or Lyft rides in Seattle waited up to 35 percent longer for rides than white customers. Across nearly 1,500 trips in the Seattle and Boston metropolitan areas, passengers with African-American-sounding names experienced cancellations more than twice as frequently as those with white-sounding names.

Related: What Ridesharing on Halloween Can Teach You About Incentives

These are some of the disturbing findings published last week in a working paper for the National Bureau of Economic Research (NEBR), titled, "Racial and Gender Discrimination in Transportation Network Companies." The authors explore potential strategies that ridesharing companies and their users could adopt in order to eliminate this type of bias, such as obscured passenger identities.

Drivers, who are independent contractors, rather than employees, have the freedom to choose the areas in which they seek riders. In the NEBR study, males with African-American-sounding names requesting rides in low-density areas were more than three times as likely to find their trip canceled than if they used a white-sounding name. A University Transportation Research Center report published in August examined the negative impacts of ridesharing companies on the underserved communities they purport to help.

In Boston, the NEBR authors also found evidence of drivers taking female passengers for 5 percent longer -- and more expensive -- rides than men. Their analysis also showed that rides tended to last longer during times of high demand and above-standard prices.

Related: The Ridesharing Safety Issue You're Not Thinking About

Here are the ways in which drivers have been found to rip off female passengers:

  • Women were charged higher fares as a result of a driver starting their trips prior to pick-up -- or failing to end it once she had exited the vehicle.
  • In some cases, drivers had lengthy conversations with female riders, meanwhile taking them on excessively long routes -- even through the same intersection multiple times.

To alleviate this problem, the authors propose that ridesharing companies establish more fixed fares.

Lydia Belanger is a former associate editor at Entrepreneur. Follow her on Twitter: @LydiaBelanger.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.

Career

Is Consumer Services a Good Career Path for 2024? Here's the Verdict

Consumer services is a broad field with a variety of benefits and drawbacks. Here's what you should consider before choosing it as a career path.

Business Ideas

87 Service Business Ideas to Start Today

Get started in this growing industry, with options that range from IT consulting to childcare.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.