Rideshare Giants Lyft and Uber are facing congressional pressure over alleged AI price gouging including here in Minnesota.
Federal lawmakers are demanding transparency from Uber and Lyft in a Congressional letter following investigations showing that their automated algorithms routinely charge passengers drastically different prices for the exact same ride.
Local advocacy groups like the Minnesota Council on Disability are also tracking the issue to see if the pricing model violates disabled Minnesotans rights.
"We can say, 'hey, look, Lyft, things are looking a little sketchy here with this. Are we going to have to pass a law? Are we going to have to refer people to the Minnesota Department of Human Rights?' You know what's going on here," says ADA Director for the Minnesota Council on Disability David Fenley. "Lyft, work with us. Uber, whoever they may be."
Uber and Lyft are now required to formally respond to the letter sent by members of Congress, and it caught the attention of Minnesota Rep. Angie Craig (DFL).
"This is unacceptable," Craig wrote on social media. "Minnesotans rely on rideshare services to get to work, visit their loved ones and purchase groceries. That’s why I’m leading my Monopoly Busters colleagues to demand answers."
An investigation found that algorithms were altering prices by as much as 50% for identical routes in major cities including Minneapolis.
Fenley says this tactic could carry steep legal risks if it violates the Americans with Disabilities Act.
"I would view this as economic accessibility, and if it falls on folks with disabilities to pay more, whether or not it's intentional because of a disability, we would definitely get involved," he says.
Fenley says as Congress waits for a response from the ridesharing companies, the state's disability community should stay alert for predatory price-gouging practices.
