Uber, a taxi hail app notorious for inflating fares at times of peak demand, boasted to drivers over the weekend that fares could soar up to eight times the normal price on New Year’s Eve.
“New Year’s Eve is coming up! Remember New Year’s is Uber’s biggest night of the year. Mark your calendar for big $$$ and more surge fares up to 8X!!” Uber said in a text message to its drivers, adding that surge pricing was here to stay.
During a snowstorm earlier this month, New Yorkers blasted Uber on Twitter for charging exorbitant rates — such as $132 for a crosstown trip.
And during Superstorm Sandy, Uber was criticized for doubling fares.
A company spokeswoman said that surge pricing helps get more cars out on the road when demand outpaces the number of drivers — and makes service more reliable.
Although car bases cannot raise their prices above rates submitted to the Taxi and Limousine Commission every year, Uber-affiliated bases file higher rates than they normally charge so they can spike their prices when there is a lot of demand.
One base called Schmecken, for instance, filed the steep rate of $150 for a trip from the Lower East Side to Gramercy– and $325 from the Upper East Side to Wall Street.
“Traditional livery car services bases don’t do that,” said Carolyn Castro, executive director of the Livery Round Table, who urged New Yorkers to use another car service on New Year’s Eve.
TLC Commissioner David Yassky said customers should reach out to the agency if they feel they were cheated. “We investigate all allegations of overcharges,” he said.