Even though Uber maintains that rider fares are not individualized, language shown in its New York app is fueling scrutiny over how the company arrives at the upfront price shown before a ride is requested.
Here's what to know
In an Instagram post, Business Insider pointed to a disclosure some New York riders may see at the bottom of an Uber quote: "This price was set by an algorithm using your personal data." State law requires companies to tell users when personal data is used to set a price.
Uber said the notice is tied only to riders' locations, which the law classifies as personal data. The company's public stance is that it does not personalize rider prices but may use personal data to tailor promotions and discounts, the outlet reported.
The post also described Uber patents. Among them is a machine-learning system that could compare a user's prior behavior with signals such as "tapping accuracy, typing speed, the angle of your phone, and even your walking speed," per Business Insider.
A separate patent described what could be inferred from ride-history data, stating: "A rider that routinely inputs a drop-off location proximate to a daycare center or school before proceeding to a professional building can be readily identified as a single working parent. The age and gender or sex of the rider can further be determined through analysis of the ride history data."
More background
A patent does not show that a company is using the system it describes, and Uber said in an email that "these patents do not establish present or past use, and neither patent relates to pricing."
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One commenter wrote, "Data is the ultimate currency today...and we are always being sold to third parties!"
What can be done?
Clearer rules and disclosures could help consumers understand how automated prices are set and what kinds of information companies are using.
One person suggested another option in the comments, writing, "You know what didn't use personal information to call you more: public transit. It's also WAY cheaper, doesn't actively lie to you, AND better for the environment."
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