Uber to Cap Surge Pricing as Massive Blizzard Approaches East Coast - Stocks in the News
New England and New York area Uber users beware: surge pricing, which is a premium that is charged when drivers are scarce and demand is high, is set to go into effect thanks to massive winter storm Juno. Users can also expect longer waits and greater demand for rides for the next 24 hours.
However, as tens of millions of residents prepare for what is being termed Snowmageddon 2015-some areas should expect more than 2 feet of snow-they will not have to worry about exorbitant price gouging by the e-hailing app.
In New York City, thanks to an agreement reached with the state Attorney General Schniederman last year, Uber will not be able to charge rates more than 2.8x the normal fare.
According to Uber spokesman Matt Wing, the "dynamic pricing will be capped and all Uber proceeds will be donated to the American Red Cross to support relief efforts."
New Jersey rides will also be capped at 2.8x and Boston will be capped at 2.9x the typical price. Pennsylvania surge prices remain uncertain.
Bill de Blasio, Mayor of New York City, during a Monday press conference, had some strong words for ride-sharing companies like Uber: "If you have any evidence-if you happen to take, for example, for-hire vehicles or have any evidence of people taking advantage of this emergency to unfairly and illegally raise the prices of their rides, it is important to call 311 and report it. Price-gouging in the context of emergency is illegal."
De Blasio issued a citywide ban on non-emergency traffic beginning at 11p.m. Monday.
States of Emergency have been issued in New York, New Jersey, Connecticut and Massachusetts.
Be careful out there if you are in New England or the New York City areas, as this could be a historic storm.
If you find yourself stuck in the snow or in the back of an Uber vehicle getting home, consider checking out our recent article on the potential upcoming Uber IPO or our latest recommendations in our free 7 Best Stocks for the Next 30 Days report . Click to get this free report >>
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