City Council Weighs Cap On Price-Gouging For Cabs

Were you forced to take an Uber home from the city on New Year’s Eve? Then you know the pain caused by price-surging, the practice of more than quadrupling cab fares when rides are in high-demand.

A new bill, proposed by Councilman David Greenfield, aims to prevent livery or car service companies from charging more than 100% of the usual rate, and it sparked a heated debate with Uber executives and taxi drivers in City Council on Monday.

“If it looks like price-gouging, and it sounds like price-gouging, and it acts like price-gouging, it is probably price-gouging,” said Greenfield at Monday’s meeting.

The proposal comes after car service apps like Uber and Lyft have made headlines for charging customers up to 900% more than the normal rate. During New Year’s Eve, for example, Uber passengers reported charges ranging from $116 to $400 fares for as little as a 25-minute cab ride.

The representatives from the Taxi and Limousine Commission (TLC) testified at the meeting about the importance of offering consumers price certainty, using the meter system. TLC Commissioner Meera Joshi acknowledged more must be done to protect consumers and that New Yorkers don’t want to be “ripped off.”

Testimonies from a taxicab coalition – representing over 20,000 taxi and livery car drivers – charged that Uber has negatively impacted their income, and praised Councilman Greenfield’s bill. The drivers agreed that a 100% cap is fair, even in extenuating circumstances like snow storms.

A representative from Uber testified that company doesn’t have the number of complaints filed over surge pricing, but that a price cap would help no one, reports CBS New York.

“We use surge pricing or dynamic pricing to get more cars on the road to help ensure that users always have a ride when they need it most,” Colin Tooze reportedly said. “That would be unhelpful for the drivers and it would also be unhelpful to the riders.”

Not all City Council members were apposed to Uber’s price surging.

“This is capitalism at its best,” said Councilman Antonio Reynoso. “It is truly what we’re talking about when we let the markets drive the system.”