Introduction

Urban transportation costs vary significantly across different regions of the United States, influenced by a myriad of factors such as geographical location, urban density, regulatory frameworks, and economic conditions.

At AnthologyAI, transportation data forms a critical part of our core consumer datasets, which also include Spend, Retail, Media actions and more. By drawing billions of connections across consumer actions, AnthologyAI offers businesses the most comprehensive, multidimensional view of the U.S. consumer in near real-time.

The following analysis explores the most expensive and cheapest cities for Uber rides across the nation. Here's what we've uncovered.‍

Most Expensive Cities for Uber Rides

1. Aspen, Colorado - Leading the chart, Aspen's average cost per mile is a staggering $36.13. This premium pricing can be attributed to the city's status as a luxury ski resort destination, where demand spikes during the tourist season.
   
   
2. Saranac Lake and Amagansett, New York - These cities follow Aspen, with costs per mile at $18.94 and $18.91, respectively. The high costs can be linked to their locations in vacation-heavy areas, where seasonal demand surges play a significant role.
   
   
3. New York City - Despite its extensive public transportation network, New York City remains one of the most expensive cities for Uber rides at $11.54 per mile. The high cost is driven by heavy traffic, higher operational costs, and immense demand throughout the year.

‍Consumer Preferences for Premium Services

A stroll through certain zip codes reveals a penchant for the plush interiors of Uber Black. Let's take a gander at where the seats are leather and the service is top-tier:

• McLean, Virginia and Mission Hills, California show a higher inclination towards Uber Black, with about 15.9% and 14.75% of rides, respectively, opting for this premium service. This preference can be associated with higher disposable incomes and business-centric travel needs in these areas.
  
  
• Beverly Hills and West Hollywood also have notable percentages of Uber Black rides at 13.77% and 7.19%, respectively, reflecting the luxury-oriented lifestyle of their populations.
  
  
• Major cities like New York (9.05%) and San Francisco (5.05%) further demonstrate the varied consumer preferences that correlate with the economic profiles and cultural norms of these metropolitan areas.

Cheapest Cities for Uber Rides

1. Bassett, Virginia - On the other end of the spectrum, Bassett offers the most economical Uber rides at only $0.98 per mile. This low rate reflects the rural setting and lower cost of living.
   
   
2. Pendleton, Oregon and Bixby, Oklahoma - With average prices per mile of $1.31 and $1.36, these cities highlight how geographic and demographic factors can significantly lower transportation costs.

Comparative Insights

• Urban vs. Rural: Typically, urban areas have higher transportation costs due to increased demand and operational complexities. However, rural areas like Bassett illustrate minimal costs due to lower demand and operational expenses.
  
  • Average price per mile in rural cities: approximately $1.36.
  • Average price per mile in urban cities: approximately $14.93.
    
• Seasonal Fluctuations: Cities like Aspen and Amagansett show how seasonal peaks can drastically elevate prices, making them comparable to international luxury destinations like Monaco or Zurich during their peak tourist seasons.
  
  • Aspen’s Uber costs rocketed as high as $45 per mile in February — an estimated 125% more than the average cost during non-peak months ($16.80 per mile).

‍Our Methodology

Our methodology centers around the comprehensive use of AnthologyAI's Transportation dataset for consumers across thousands of cities (5700) in the US.

• Data Collection: AnthologyAI’s consumer data is sourced from an audience panel created directly and ethically through the Caden.io app where consumers are compensated for sharing their data. The panel is designed to be representative of the US Census.
  
• Analysis: We analyzed over a million rides and identified the average cost per mile for Uber rides across various U.S. cities.
  
• Data Cleaning: To refine our analysis and ensure accuracy, we eliminated outlier data points. This included rides shorter than 0.02 miles, which could skew the average fare calculations, and cities with fewer than 50 rides, as these do not provide sufficient data to form a reliable basis for comparison.
  
• City Ranking: Using the cleansed data, we ranked cities based on the cost per mile, identifying the 10 cities with the highest costs and the 10 cities with the lowest costs per mile. This categorization allowed us to explore and highlight the extremes in urban transportation costs effectively.
  
• Consumer Preference Analysis: In addition to cost analysis, we examined the preferences for different types of Uber services—specifically Uber Black versus UberX.

The analysis of Uber fares across the U.S. highlights the profound impact of location, seasonality, and economic factors on transportation costs. For businesses, these insights provide valuable information for strategic decision-making.