Economy

The cost of Uber and Lyft rides rose nearly 10% last year — and now riders say they're cutting back

An Uber driver sits behind the wheel while holding a smart phone as his car sits in the street.
Some ride-hailing customers say that they're cutting back on apps like Uber and Lyft as fares rise, according to new data from Gridwise. JOSEPH EID/AFP via Getty Images
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Catching a ride on Uber or Lyft got more expensive last year, and some riders are cutting back as a result, new data and a survey show.

The prices that customers paid on these apps rose 9.6% in 2025, according to an annual report on gig mobility from data analytics company Gridwise. The report analyzed information about 1 billion tasks over the past year on apps for ride-hailing, delivery, and other kinds of gig work.

It found that the average ride price rose to $23.66 at the end of 2025, up from $21.58 in December 2024.

Over the same period, a majority of ride-hailing customers surveyed — 60.4% — told Gridwise that they've reduced their usage of the apps due to price. That's a jump of 16.6 percentage points over 2024.

The company conducted two surveys, one in December 2024 and the other in January 2026. Each asked 1,000 ride-hailing and delivery customers about their app usage.

The belt-tightening hasn't translated into financial trouble for Uber and Lyft. They have been able to keep growing — and even turn a profit — by expanding their businesses to new markets. Uber has said that it's growing its ride-hailing and delivery operations in less-dense suburbs, for instance.

"People are stating that they are sensitive to prices, but we're seeing growth in the industry overall," Ryan Green, CEO of Gridwise, said in an interview.

For years, many consumers have been cutting back their use of ride-hailing apps and other app-based services, such as Airbnb, which grew out of Silicon Valley and built customer bases with loss-inducing discounts — colloquially known as the "millennial life subsidy."

How fast ride-hailing prices increased depended on which app riders used. On average, Lyft priced its rides about 14% below Uber's, according to Gridwise's data.

The gig-work drivers behind those rides saw their earnings rise, though not nearly as fast as fares: Gridwise found that gross driver pay increased by 3.6% per trip and 4.1% per hour.

Ride-hailing customers also took more trips using premium services, such as black-car rides and XL, which pairs riders with SUVs and other large cars, Gridwise found. Those kinds of trips tend to cost more than standard Uber and Lyft rides.

The companies also took a bigger share of each fare on average in 2025. Average platform fees per trip rose about 33% in 2025, Gridwise found.

An Uber spokesperson said that Gridwise's report "relies on a very small fraction of drivers and delivery workers, and doesn't accurately reflect the facts." In January, Uber said that while "prices have gone up significantly over the last few years," the portion going to Uber has remained largely flat.

Lyft did not respond to requests for comment on Gridwise's findings.

That's good news for Uber and Lyft's bottom line, Green said.

"At the end of the day, it's telling us that these companies are becoming much more profitable on a per-trip basis," he said.

Do you work for Uber, Lyft, or another ride-hailing service? Contact this reporter at abitter@bjinnox.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@bjinnox.com or via encrypted messaging app Signal at +1 (808) 854-4501.