UberThe nation's second-largest rapid transit system is shut down today, and ride-hailing service Uber has assured users it will cap its "surge" pricing at 3.9x.
The Uber app automatically imposes surge pricing based on the ratio of riders to drivers, but that algorithm gets very controversial during times of extreme stress. When residents of downtown Sydney were fleeing a hostage situation in 2014, a 4x surge turned into a storm of criticism. (Uber quickly refunded those high-priced rides and began offering free rides in the city.)
In early 2015, Uber adopted a policy of limiting surges during natural disasters and other emergencies. However, a Metro outage in DC in May caused spikes in prices again, since Uber didn't consider that event an emergency.
This time, it will impose the surge cap. The company is also encouraging people to share rides within their Uber by traveling with others or using the uberPOOL service. "We will work around the clock to keep DC moving tomorrow," an Uber spokesperson told Ars via e-mail. "We are extending uberPOOL to the entire metropolitan area during the closures to maximize every car on the road while also keeping prices down for riders. Passengers using uberX to travel with neighbors or co-workers can use the Fare Split option to share the cost of their trip." Washington, DC, Mayor Muriel Bowser held a press conference Tuesday night in which she urged companies not to take advantage of consumers during the shutdown. "We have a little more ability to know what the taxi cabs are doing,” Bowser said, according to a writeup in The Washington Post. “But we expect our business community to… not take advantage of the situation and all of our enforcement agencies will be on alert for that." Lyft didn't mention a cap on surge pricing.
Both Uber and Lyft are offering additional discounts for first-time users. Lyft's promo code for $20 off is METROHELP, while Uber offers first-timers $25 off with the code METRODC. Update 2:30pm: Uber has shared some statistics about the DC morning commute in a just-published blog post. "A record number of partners were on the road—an increase of 50% over last Wednesday’s rush.
Despite overwhelming demand, the average surge multiple stayed below 1.7x during the morning rush," wrote an Uber spokesperson on the blog. The Metro closure also created more ridership, with three times as many people taking a first Uber trip, compared to the same time last week.
This time, it will impose the surge cap. The company is also encouraging people to share rides within their Uber by traveling with others or using the uberPOOL service. "We will work around the clock to keep DC moving tomorrow," an Uber spokesperson told Ars via e-mail. "We are extending uberPOOL to the entire metropolitan area during the closures to maximize every car on the road while also keeping prices down for riders. Passengers using uberX to travel with neighbors or co-workers can use the Fare Split option to share the cost of their trip." Washington, DC, Mayor Muriel Bowser held a press conference Tuesday night in which she urged companies not to take advantage of consumers during the shutdown. "We have a little more ability to know what the taxi cabs are doing,” Bowser said, according to a writeup in The Washington Post. “But we expect our business community to… not take advantage of the situation and all of our enforcement agencies will be on alert for that." Lyft didn't mention a cap on surge pricing.
Both Uber and Lyft are offering additional discounts for first-time users. Lyft's promo code for $20 off is METROHELP, while Uber offers first-timers $25 off with the code METRODC. Update 2:30pm: Uber has shared some statistics about the DC morning commute in a just-published blog post. "A record number of partners were on the road—an increase of 50% over last Wednesday’s rush.
Despite overwhelming demand, the average surge multiple stayed below 1.7x during the morning rush," wrote an Uber spokesperson on the blog. The Metro closure also created more ridership, with three times as many people taking a first Uber trip, compared to the same time last week.