Newsletter
Dara Khosrowshahi, the CEO of Uber, was left in shock after he incorrectly guessed the price for a 3-mile ride. Surprisingly, the CEO of this ride-hailing service provider didn’t even guess half the exact price of the ride. He was asked the price of a 2.95-mile (approximately 3-mile) ride, and his response was far from being accurate.
Uber’s CEO estimated that the price of this 3-mile-long ride was $20, which was wrong. However, the question on your mind now will be how far off from the exact price for the ride he was. Well, doubling the price he gave won’t still be up to the price paid for that 3-mile ride.
The exact price for the ride was $51.69 which is more than double the price that the Uber CEO gave. This came as a shock to Dara Khosrowshahi, who exclaimed “Oh my God” after learning about the price. Dara went on to attribute this hike in price to the surge in inflation across the country.
Inflation stands as the major cause of the price hike in Uber services across many regions
Over the past few years, the price of a ride on Uber has been increasing. The price for Uber rides has seen a 92% increment between the years 2016 and 2021 for users around the world. That increase is rather concerning, but the company’s CEO attributes this increment to inflation.
During the pandemic, Uber, just like other ride-hailing services, took a major blow due to the movement restrictions. This posed a financial challenge to them, as their business relies on movement from one place to another. After the pandemic, things went back to normal, but users of this service were already noticing changes to the price of rides.
Despite this price increment, Uber wasn’t still struggling until the second quarter of 2023. By this time, the company announced their operating profit for the first time since its inception. This might come as a shock to most users, considering how popular the ride-hailing service is around the world.
It shows why the outrageous price for the 3-mile ride left Uber’s CEO at a loss for words. This high price is a result of inflation, and similar ride prices can be seen in various regions around the world. Over the years, Uber has tried its best to keep the price of rides down for users, but it seems like its CEO is out of touch with the current situation.
Now that Uber is publicly traded, the company might get prices down a little. According to the CEO, his ride-hailing company has an “underdog mentality” which moves them to keep striving to get better. Until prices for rides stabilize, users of this service will have to endure paying some outrageous prices to get from point A to B.