Uber has announced that rising costs of living, including housing, groceries, and insurance rates, have led to increased fares. The company remains committed to affordability and reliability. This announcement was shared through a promotional campaign on Facebook on February 10.
According to Uber's report, some states impose significantly higher insurance requirements on rideshare drivers compared to taxis and personal vehicles. For instance, uninsured/underinsured motorist (UM/UIM) coverage in states like California is reportedly 25 to 50 times higher than for personal vehicles. This leads to increased litigation and rising costs. These high insurance mandates directly impact riders, with up to 32% of their fare in certain states going toward mandatory insurance expenses, making rideshare trips more expensive.
InsuranceBusiness highlights that third-party litigation funding (TPLF) is an unregulated multi-billion-dollar industry where hedge funds and financiers invest in lawsuits in exchange for a share of settlements. This contributes to rising auto insurance costs by increasing financial pressure on insurers, leading to higher premiums for consumers and encouraging larger settlements, which insurers pass on through increased rates.
The Desert Sun reports that California car insurance rates surged by 48% in 2024, reaching an average of $2,575 annually—11% above the national average. This increase is driven by higher liability limits, wildfire-related losses, and rising vehicle repair costs. Electric vehicle insurance premiums increased nearly 30%, with repair costs averaging $6,066 per accident—30% higher than for gas-powered vehicles.
Established in 2009, Uber Technologies Inc. is a global mobility and technology company offering ride-hailing, food delivery, freight, and business travel services. Dedicated to reimagining transportation, Uber emphasizes safety, sustainability, and innovation according to its website.