Honolulu lawmakers vote to cap ride sharing surge pricing

Saturday, 08 Jun, 2018 0

Honolulu could become the first city in the US to outlaw ride hailing surge pricing.

City council lawmakers voted to curb the practice, prompting an angry reaction from Uber, which said it may jeopardize service in the city and beyond.

Uber has called on customers to oppose the move.

Honolulu City Council approved by a 6-3 vote a bill to cap the practice but it still needs to be signed off by Mayor Kirk Caldwell.

Hawaiinewsnow.com reports the Caldwell administration has shown some opposition to capping surge pricing as Uber and Lyft already show the final fare before a ride begins, unlike traditional taxis.

If it goes ahead it would curb innovation and limit consumer choice, Uber said.

"The move ‘is a solution in search of a problem, as we’ve been told the City hasn’t received a single consumer complaint about our dynamic pricing model,’ Tabatha Chow, Uber’s Honolulu senior operations manager said in a statement.

Chow said taxi fares in Honolulu are the priciest in the country and Uber is typically 40% cheaper than that.

Lyft also responded in a statement saying: "When demand for rides is greater than the number of drivers on the road, passengers may pay an extra percentage on top of the base ride amount."

The Honolulu Department of Customer Services also opposes a cap but would set a maximum price if required to do so by law.

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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