Honolulu lawmakers pass ‘surge pricing’ cap for ride-hailing companies

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(Reuters) – Honolulu might grow to be the primary U.S. metropolis to restrict fares ride-hailing firms can cost when demand spikes, following a metropolis council vote on Wednesday, the Honolulu Star-Advertiser newspaper reported.

FILE PHOTO: The brand of Uber is seen on an iPad, throughout a information convention to announce Uber resumes ride-hailing service, in Taipei, Taiwan April 13, 2017. REUTERS/Tyrone Siu/File Picture

Trip-hailing firms corresponding to Uber Applied sciences Inc [UBER.UL] and Lyft Inc use a mannequin generally known as “surge pricing” by which the fare for a experience rises when elements corresponding to rush hour and unhealthy climate improve demand for the service.

The observe may very well be restricted sooner or later in Hawaii’s largest metropolis after the Honolulu Metropolis Council authorized by a 6-Three vote a invoice requiring metropolis officers to cap surge pricing by ride-hailing firms, the newspaper reported.

For the invoice to grow to be regulation, nevertheless, it nonetheless must be signed by the Mayor Kirk Caldwell, whose administration seems to oppose the measure, Hawaiinewsnow.com reported.

The town Division of Buyer Service stated it opposed the measure as a result of ride-hailing firm prospects already know the fare they are going to be charged, which isn’t the case with taxi cabs, the information web site reported.

Uber additionally made the case that riders know the fare upfront the Honolulu Star-Advertiser newspaper reported, citing an announcement from the corporate. If the measure goes into impact, it could additionally prohibit innovation, restrict selection and will jeopardize availability of Uber service on the island, the corporate stated.

The measure “is an answer seeking an issue, as we’ve been advised the Metropolis hasn’t obtained a single client criticism about our dynamic pricing mannequin,” Tabatha Chow, a senior operations supervisor, was quoted as saying within the assertion.

Final month, officers from Uber and Lyft Uber advised council members {that a} cap on fares can be the primary such limitation imposed in america, the Honolulu Star-Advertiser reported.

Reporting by Brendan O’Brien in Milwaukee; Enhancing by Catherine Evans

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