A new study indicates that Uber Technologies Inc. riders are paying significantly more while experiencing longer wait times. Analysis by Len Sherman, a Columbia Business School executive and adjunct professor, found that prices per mile rose 53% and the time between driver matching and arrival increased 19% between Q1 2023 and Q1 2026.

The findings, cited in a Business Insider report, suggest a shift in the ride-hailing service's economics. Sherman argues that Uber is charging riders more while paying drivers less. However, Uber denied these claims, stating that the notion of maximizing profits by increasing its take from fares is false.

Study methodology and geographic scope

Sherman’s analysis relies on driver data and excludes the time riders spend waiting to be matched with drivers on the platform. The study compiled data from 37,500 trips across six US cities: Miami, Buffalo, Atlanta, Dallas, Houston, and Tampa.

Wait times increased in five of the six cities during the study period. Tampa was the sole exception, where wait times declined slightly. Sherman suggests that rising wait times could impact Uber’s relationship with its customer base.

Corporate restructuring and autonomous expansion

The pricing scrutiny coincides with significant operational changes at Uber. The company, led by Dara Khosrowshahi, announced last month that it is cutting about 3,300 jobs, representing 10% of its workforce. This restructuring aims to simplify operations and redirect resources toward growth, innovation, and autonomous mobility.

Investor Ross Gerber, co-founder of Gerber Kawasaki Wealth Management, characterized the layoffs as the first victims of the AI era. Simultaneously, Uber is expanding its autonomous driving pursuits through partnerships with automakers and technology firms. The company expects to commit more than $10 billion over the coming years to bring autonomous vehicles to market at scale. Uber also plans to begin offering Robotaxis on its platform in Japan in late 2026.

What the numbers show

The divergence between a 53% increase in price per mile and a 19% increase in wait times highlights a potential efficiency gap or value proposition shift for consumers. While costs have risen sharply, the service speed has deteriorated moderately. This combination suggests that riders are receiving less value per dollar spent compared to Q1 2023, assuming constant trip distances. The data does not specify if the fare increase correlates with higher driver earnings or increased platform fees, leaving the distribution of the additional revenue unclear.

Uber Technologies settled a passenger sexual assault lawsuit in Austin, Texas, less than 48 hours after jury selection concluded. The case, Jane Doe QLF 001 v. Uber Technologies, Inc., was scheduled for opening statements on Monday before U.S. District Judge Charles R. Breyer.

The plaintiff alleged that failures in the company's background check process allowed a dangerous driver onto its platform, leading to her assault during a 2020 ride. The driver, Victor Huynh Le, was criminally convicted of sexual assault in 2022 and sentenced to 11 years in prison. During jury selection, Uber stipulated that it would not contest that the assault occurred. The terms of the settlement remain confidential.

Litigation context and MDL status

This case was intended to be the third federal bellwether trial in the In re: Uber Technologies Inc., Passenger Sexual Assault Litigation (MDL No. 3084). Judge Breyer, who presides over the multi-district litigation, personally oversaw the prior bellwether trials in Arizona and North Carolina.

Co-lead counsel for the plaintiffs noted that this resolution follows two consecutive federal bellwether verdicts where juries found Uber responsible for its drivers' assaults. The legal team emphasized that approximately 5,000 other survivors are still awaiting justice through the MDL process.

Legal representation and statements

The plaintiff was represented by Kevin Queenan of Queenan Law. The case was overseen by co-lead counsel Rachel Abrams (Peiffer Wolf), Sarah London (Girard Sharp), and Roopal Luhana (Chaffin Luhana). Co-lead trial counsel included London, Alexandra M. Walsh (Anapol Weiss), Deborah Chang (Chang Klein), and Khaldoun Baghdadi (Walkup Melodia).

In a statement, the MDL co-leads stated that Uber chose to resolve the case rather than let a jury hear the evidence. They noted that Uber has begun making changes to its safety practices due to the litigation but argued these changes come too late for thousands of passengers already harmed. The counsel called for a global resolution for the remaining 5,000+ survivors.