The cap comes after an agreement struck between Uber and the New York City Attorney General’s office in January 2014 that required Uber to limit prices during“abnormal disruptions of the market”, including emergencies and natural disasters. Uber also announced a national policy for its price limits during those emergencies.
In an email to Bloomberg, Uber said the following:
Dynamic pricing will be capped and all Uber proceeds will be donated to the American Red Cross to support relief efforts.
The company later clarified to TechCrunch that the cap will be in place in any market that has declared a State of Emergency.
While Uber plans to limit dynamic pricing during this storm, the company has had a bad history with emergency situations and surge pricing. In late 2012, Uber received criticism for raising fares during Hurricane Sandy. (The agreement with the NY AG came in part as a result of Hurricane Sandy backlash.)I feel like taking Uber out of my textbook; or adding them to the chapter on how to keep regulators at bay.