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Uber to limit surge pricing during massive east-coast blizzard (updated)

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The east coast is about to get hit with a potentially record-breaking amount of snow, which means Uber has the opportunity to... redeem itself. The taxi-hailing app, notorious for hiking prices on holidays and during rush hour, says it will suspend cap surge pricing during the storm so that prices don't go above 2.8x the normal rate. This marks a change of heart from Uber, and possibly a smarter PR strategy, too: The company has been beset by a wave of bad press over the past few months. In particular, it's been criticized for raising prices during various emergencies and natural disasters, including Hurricane Sandy in 2012 and a hostage crisis in Sydney, Australia last December.

Finally, last year, Uber reached an agreement with New York's Attorney General to not exploit crises with fare hikes. That means the company is now simply making good on its promise. "Dynamic pricing will be capped and all Uber proceeds will be donated to the American Red Cross to support relief efforts," Uber said in an e-mailed statement published by Bloomberg. As of this writing, it's already snowing in New York City, and has been for several hours, though according to various forecasts, the storm won't really pick up until tonight. All told, the storm is expected to continue through Tuesday.

Update: Uber has since clarified that it won't suspend surge pricing altogether; rather, it will cap surge rates at 2.8x the normal fare.

Source: Bloomberg
In this article: blizzard, surgepricing, uber
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