The Fees That Could Increase the Cost of Your Uber or Lyft Ride
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What is the main topic discussed in this episode?
Here's your Money Briefing for Friday, March 15th. I'm J.R. Whelan for The Wall Street Journal. Rideshare services like Uber and Lyft make it easy to get around. Just open the apps and a few clicks later, you know the cost to get to the airport or head across town. But while the total cost of the ride is clearly marked, what is often not clear is the assortment of fees beyond the base fare.
What fees beyond the base fare might appear on my Uber or Lyft receipt?
I don't know that a lot of people know about some of these fees. I didn't realize some of them until I really took an in-depth look at my Uber receipt.
We'll go through the numbers with Wall Street Journal travel columnist Dawn Gilbertson after the break.
Fees are likely to drive up the cost of your next Uber or Lyft ride. Wall Street Journal travel columnist Dawn Gilbertson joins me. Dawn, what do these fees cover?
It really depends on the fee. There's a booking fee, which covers everything from the company's regulatory safety and operational costs. There's a reservation fee if you want to book a ride in advance. So there's really a plethora of fees that just depend on, you know, what type of ride you're taking.
How are these fees going over with customers?
Here's the thing. I don't know that a lot of people know about some of these fees. I didn't realize some of them until I really took an in-depth look at my Uber receipt.
Which specific charges did Dawn Gilbertson find on her airport ride invoice?
Lyft doesn't break down all their individual fees, but Uber does and has really quite the lineup. And so that was pretty eye-opening for me.
Yeah, you recently booked a ride to the airport and numerous fees were tacked on to your invoice. What do those numbers look like?
The most stunning one to me was I reserved a ride. You know, you have two options with Uber and Lyft. Basically, you can get a ride on demand or they've really lately been pushing these reserve rides. Hey, give yourself peace of mind, reserve a ride. So in this particular case, I was going to the airport like at four in the morning And I'm like, all right, I really, I need a car here. And the reservation fee was $19.31. That's not the fare, by the way. The base fare was $23.39. So it's really just something that people need to be aware of. You know, when you book a ride, whether it's reserved or not, they do give you the upfront price. So these aren't surprise things at the end. You just have to know that sometimes there's a premium for reserving a ride.
Wow, that is quite a cost of convenience.
It's really steep. I mean, it really it really did floor me. Do you know what I'm saying?
Which fees are set by airports or local governments versus company-imposed?
Like, I just feel like what I've done since then, I've maybe taken only one reserved or scheduled ride since then, because what I found is just get up a little bit earlier and do one on demand. You build in your own little cushion rather than paying this very steep premium to Uber or Lyft.
Do you remember all the fees that were on your invoice from your airport trip?
This was a ride from my house to the airport, which is 14 miles away. And there was a $19.31 reservation fee because I reserved it in advance, a $7.61 booking fee, $4.75 airport surcharge, and the fare was $23.39.
Are all these fees the company's doing or are any of them outside their control?
There's plenty that are mandated by the government or imposed by local governments and airports. The airport surcharge is one that people will see on almost every ride to and from the airport. But the booking fee and the reservation fee in the case of Uber, those are both company fees.
Now, you mentioned that some of these fees are for reserving the car ahead of time. Are people actually doing that and paying that fee?
Lots of people do. Uber's CEO said in a presentation last week, you know, this is aimed at higher income travelers, they say, and 20% of their airport rides are now Uber reserve rides. And translated, that means 20% of their airport rides are costing people in general more money.
Why did Uber and Lyft decide to go down this road to do this service and this fee?
Why are rideshare companies charging reservation and convenience fees?
I mean, they say that there's peace of mind, right? In certain places, if you're in a big city, you generally don't have an issue of availability.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:03–0:27
2
What fees beyond the base fare might appear on my Uber or Lyft receipt?
0:27–1:36
3
Which specific charges did Dawn Gilbertson find on her airport ride invoice?
1:36–2:36
4
Which fees are set by airports or local governments versus company-imposed?
2:36–4:08
5
Why are rideshare companies charging reservation and convenience fees?
4:08–5:01
6
What convenience options (reserve, priority pickup, upgrades) add extra costs?
5:01–6:11
7
How transparent are Uber and Lyft about fee breakdowns on receipts?
6:11–6:22
8
What practical steps can riders take to avoid or reduce extra rideshare fees?
6:22–6:37
Speakers
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