East Coast Blizzard: Uber to Cap Surge Pricing & Donate Proceeds to Red Cross

Source http://feedproxy.google.com/~r/allfacebook/~3/KIqXpRrANiE/613484

According to TechCrunch and Bloomberg, Uber’s maligned surge pricing (put in place when demand for services is higher than normal) will not rise above 2.8x. Additionally, proceeds during the storm will be donated to the American Red Cross for relief efforts.

Mashable reported this morning that Uber, under some duress, has promised to not implement surge pricing during emergencies. After an agreement in New York last year:

The formula for natural disasters is now limited to the normal range of prices the company has charged within the preceding 60 days minus the three highest prices charged during that period.

If you read that about three times it makes sense. Basically, there will be a surge but it has its limits. Lyft caps its “surge” at 200% for comparison’s sake. But that’s for official emergencies, mayor in front of a podium sort of natural disaster. Check this language out, from Uber CEO Travis Kalanick last year: 

This policy intends to strike the careful balance between the goal of transportation availability with community expectations of affordability during disasters. Our collaborative solution with Attorney General Schneiderman is a model for technology companies and regulators in local, state and federal government.

That doesn’t sound very generous does it? The predicted storm is supposed to be bad. But there’s always that chance that it won’t be totally, store all of the NYC subway trains underground bad. Which means there are going to be lots of hours that are just really snowy, windy, and miserable. You’ll be paying surge pricing to get to and from your office and your warm, cozy, house.

Here are some early complaints:

I hear Uber is implementing a new surge pricing model for this blizzard where they just take your kidney and leave you bleeding in the snow

— Sam Lansky (@samlansky) January 26, 2015

As New York and Boston prepare for #juno2015 and #Snowmageddon2015, Uber and its surge pricing is all like… pic.twitter.com/BJ6cK5cqWj

— Who’s Driving You? (@WhosDrivingYou) January 26, 2015

LOL! “@andylocal: .@Uber_NYC Will you be doing surge pricing during the storm?”

— MikeFlanneryFOX32 (@PoliticalEditor) January 26, 2015

Latest #NYC #blizzard report from our gentrification correspondent: violent scenes in Whole Foods, Uber surge pricing x2000% Cronut line ok

— Hari Kunzru (@harikunzru) January 26, 2015

@Uber @lyft PR opportunity: cover surge pricing in NYC for the next 48 hours. #juno2015 #juno

— Sam Giber (@SamGiber) January 26, 2015

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