NEW YORK — It’s faced blowback before over accusations of price-gouging in times of crisis. For Tuesday’s "Snowmaggedon 2015 " scare on the East Coast, Uber agreed to cap "surge pricing" on its ride-booking service.
"Dynamic pricing will be capped and all Uber proceeds will be donated to the American Red Cross to support relief efforts," the San Francisco company said Monday, promising not to boost normal prices above 2.8 times normal pricing.
Meanwhile, rival Lyft said in a statement that its premium for high demand would "as always" be capped at 200 percent of baseline pricing.
Uber’s cap follows the terms of an agreement it reached last year with New York Attorney General Schneiderman. "The Attorney General’s Office will be working with Uber to ensure last year’s price cap agreement is in full effect," spokeswoman Liz DeBold told the New York Daily News.
Uber has been plagued by harsh criticism over rider safety and pricing policies, including a steep rate hike on passengers fleeing the area of a December hostage crisis in Sydney, Australia.