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11/21/2024 08:47:11 pm

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Uber To Cap Surge Pricing During East Coast Snowstorm

Uber

(Photo : Reuters ) Following a rape charge on an Uber driver, the mobile taxi service is implementing new safety precautions.

Taxi app Uber has agreed to put a cap to its prices as the Northeast Coast battles a very fierce snowstorm. 

The potentially historic blizzard is expected to dump up to three feet of snow, snarl traffic, topple trees, and down power lines. More than 40 million people will be greatly affected, Wired.com reported.

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On Monday, the taxi company with headquarters in San Franciso announced it would limit its prices during the storm. The company said fare would not exceed 2.8 times the normal, and that all proceeds would go to the American Red Cross for relief efforts.

New York Attorney General Eric Schneiderman had issued a warning against possible price gouging during the storm, the report relayed.

Uber would usually impose what is called surge pricing when demand is high and supply is low. More than the income generated, the company said, it encourages drivers to get on the road during critical times.

Many, however, are not convinced with the company's reason, and have criticized the practice, said the report.

One most recent case of Uber's surge pricing, was during Sydney's hostage crisis in December. Passengers were charged a minimum of US$100 a ride, whic is four times the normal fare. Similar complaints emerged when Hurricane Sandy hit in 2012, and during another snowstorm last year.

Observers say this is a perfect opportunity for Uber to redeem itself, as it deals with various bad publicity, lawsuits, and clashes with regulators from the U.S. as well as overseas, according to Wired.com.

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