Uber’s NYE Surge Pricing Outrages Public and Spurs Refunds
On January 1, social media lit up with complaints about Uber’s surge pricing on New Year’s Eve. Fares were six or seven times the usual rate for some riders. For Matthew Lindsay of Edmonton, the surge made his ride over $1,100, and after his criticisms aired on television, Uber offered to pay for half of his Uber bill.
CTV News has the scoop on Lindsay’s expensive ride. Lindsay’s Uber ride, from southeast Edmonton to St. Albert, would have cost just $125 on a normal night. But on New Year’s Eve, Uber used surge pricing, increased fares during peak hours, to get more drivers on the road. As a result, Lindsay’s ride was 8.9 times higher than usual.
Riders across North America are outraged over Uber’s surge pricing. They feel exploited -- after making travel arrangements so they wouldn’t be tempted to drink and drive, they were forced to pay exorbitant prices just for a safe way home. Riders like Lindsay are calling for a cap on Uber’s surge pricing.
But Uber defends its business model. The company alerted the public days before NYE to remind riders that surge prices would be in effect. What’s more, riders have to agree to surge prices before accepting the ride. Lindsay claims that because he was sharing his Uber with others, there were multiple stops and he only saw the cost of the first one.
However, Uber argues that its business guarantees that party-goers can always secure a ride even on the busiest of nights and without having to wait hours for a taxi -- as long as riders are prepared for the hefty charge.
Despite Lindsay’s poor Uber experience, he doesn’t plan on swearing off the service. Edmonton is, in fact, expected to be the first Canadian city to legalize the service although many other cities are lobbying for Uber