Super Pumped: The Battle for Uber

by Mike Isaac

Until 2014, that is, when one executive had the brilliant idea of introducing the “Safe Rides Fee,” a new charge that added $1 to the cost of each trip. At the time Uber billed it as necessary for passengers: “This Safe Rides Fee supports our continued efforts to ensure the safest possible platform for Uber riders and drivers, including an industry-leading background check process, regular motor vehicle checks, driver safety education, development of safety features in the app, and insurance,” went the company’s blog post. If riders noticed the fee, they rarely complained. Many assumed it would just make their rides safer somehow. The reality was much less noble. As Uber’s insurance costs grew exponentially, the “Safe Rides Fee” was devised to add $1 of pure margin to each trip, according to employees who worked on the addition. That meant for each trip taken in the United States, Uber took in an extra dollar in cash. The drivers, of course, got no share of the extra buck. That number added up to hundreds of millions of dollars over years of operation, a sizeable new line of income. After the money was collected it was never earmarked specifically for improving safety. “Driver safety education” consisted of little more than a short, online video course. In-app safety features weren’t a priority until years later. “We boosted our margins saying our rides were safer,” one former employee said. “It was obscene.”