Why Uber Fees Are More Expensive Depending On Location

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From California to New York, local laws add to the cost of your Uber ride.

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Use of ride-hailing companies such as Uber and Lyft is so ubiquitous these days that it’s unusual to come across someone who doesn’t have at least one of the apps downloaded. Heck, even my mom, who regularly calls me for all sorts of tech support, recently became a driver as a post-retirement side hustle.

Why Uber Fees Vary By City And StateUber is officially considered a transportation network company (TNC), a label used by government entities to describe ride-hailing firms, limousine services, airport shuttles, charter buses and similar types of transportation. The TNC industry is mainly regulated by states, which vary in the breadth and cost of their rules, according to Harry Campbell, founder of The Rideshare Guy blog and podcast.

Story continuesThen, there’s New York City, which has long had a contentious relationship with Uber (even suspending the company from operating its UberX service in 2012). City lawmakers recently approved several bills that regulate ride-hailing operations. Included in the legislation are minimum pay rates for drivers and a cap on the number of drivers allowed, rules the city has been attempting to institute since 2015.

Marketplace fee: According to Uber, this fee is charged for connecting riders and drivers within “certain markets.” It’s already included in the upfront price or fare estimate presented before the ride. Ground transportation surcharge: Any trip that takes place in the city of Chicago gets a surcharge of $1.13 on UberX or UberXL rides and $0.53 on pool rides.

Black Car Fund fee: The Black Car Fund is a nonprofit created by the state of New York that runs health and safety programs for and provides workers’ compensation insurance to for-hire drivers. To support the fund, a 2.5% fee applies to all Uber rider fares.

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