Uber claims it has capped surge pricing due to the transit strike

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Uber says it has pressed pause on its controversial fare fluctuations, called surge pricing, due to the transit strike, but some riders are not so sure after seeing sky-high prices this morning.

Surge pricing means that the price to ride an Uber changes depending on the supply and demand, and with thousands of people unable to get to work or school because of the bus strike, that demand jumped significantly.

But Uber says they have put a cap on the multiplier in order to help riders.

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“Pricing is dependent on many factors including how far the trip is, the time it takes to get there, traffic, the product selected, how many drivers were on the road at that exact time in that area, and how many riders were requesting trips at that exact time, etc. In response to the transit strike, Uber has capped surge pricing and offered additional incentives to drivers to encourage them to complete more trips during the strike,” said Uber Canada Communications Lead Keerthana Rang.

translink burnaby transit centre bus depot cmbc cupe strike

CUPE 4500 strike outside TransLink’s Burnaby Transit Centre bus depot on January 22, 2024. (Daniel Chai/Daily Hive)

Rang added that on the first morning of the strike, it increased the number of drivers by 70% over the same hour last week.

“Surge pricing occurs when there are more ride requests than there are drivers,” she explained.

But that’s not what many riders spotted when they booked a trip this morning. One man in North Vancouver said a trip he has taken regularly had a $90 increase, something we asked Uber to explain.

“It is hard to comment on a specific example. Every trip request is different. It would depend on major factors like how far such a trip would have been and the time it would have taken to get there given the traffic on the roads at that time. Other factors on pricing, like I already mentioned, include the product selected, how many drivers were on the road at that exact time in that area, and how many riders were requesting trips at that exact time, etc.”

The online anger has not been calmed by these statements it seems. It seems that many were hopeful that Uber and Lyft would be cheaper on Monday morning.

“What a scam. I feel sorry for all the ppl who got gouged. It should be illegal to hike fares that much,” one commented online.

Another said they noticed a massive hike for their regular trip.

My 7 min drive to work usually 8-10 bucks was 25 this morning I just walked in the rain

— Shibby James (@ShibbyJames21) January 22, 2024

Others are praising the taxi companies for their rates remaining unchanged, which isn’t a decision the drivers make but instead the set-rate regulations imposed on the industry by the Passenger Transportation Board.

“It cost me roughly $32 to get to Port Coquitlam from Surrey taking a taxi. This is the usual amount I pay when taking a taxi from my home to work or work to home,” Colleen de Papp said on X Monday.

Others might wish they had chosen a similar option. Tyler K wrote that his trip was nearly four times as much this morning.

This was at 8am and is usually a $22 ride. pic.twitter.com/BArCGrUsVg

— Tyler K (@Baddogmedia) January 22, 2024

Many others agreed.

Uber drivers in Vancouver today. That’s usually an 11 dollar ride. #TransLink #translinkstrike #Vancouver #Uber pic.twitter.com/WSp90HS39g

— leezo (@whatsupsports_) January 22, 2024

Another person shared that the prices had dropped by mid-day, which Daily Hive confirmed.

Surge pricing has settled down. Morning rush is over pic.twitter.com/H24LO4RjxH

— Kevin Cawthra (@KevinCawthra) January 22, 2024

But it isn’t unusual as most folks don’t typically commute to work at lunchtime, and therefore, demand goes down.

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