Today, Uber announced that the company is instituting a cap on surge pricing during the mammoth snow storm hitting the northeast this week. Surge prices will be capped at 2.8 times the usual fares. The ride-hailing app has become especially popular among millennials.
Last July, Uber reached an agreement with New York attorney general, Eric Schneiderman to cap pricing during emergencies. Uber's price surging really became a controversial issue when the company implemented surge pricing during Hurricane Sandy, forcing riders to pay egregious prices during a disaster.
In addition to capping prices, Uber will also be donating all proceeds to the American Red Cross.
Just over a month ago, Uber came under fire for initiating surge pricing for riders in Sydney during an armed hostage crisis. It will be interesting to see how this snow storm plays out and if it becomes yet another public relations nightmare for the company. See the map below which visualizes the numerous Uber troubles.