As Demand Rises After NYC Shooting, Prices Soar... Uber and Lyft Set Fare Caps

by Jeong Hyunjin

Published 13 Apr.2022 06:59(KST)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Following a mass shooting incident during the morning commute on the Brooklyn subway in New York, USA, which left 29 people injured, ride-sharing companies Uber and Lyft faced criticism as surging demand led to soaring fares. In response, New York City introduced a cap on ride fares.

According to Bloomberg and other sources on the 12th (local time), Uber and Lyft announced that they would disable the surge pricing system, which raises prices sharply based on an algorithm when user demand exceeds driver supply, and impose fare caps exclusively in New York.

This measure came after the shooting incident that occurred in New York on the same day. Around 8:30 a.m., on a subway N line train entering the Brooklyn 36th Street station, a man wearing a construction site safety vest set off a smoke bomb and then indiscriminately fired at passengers. The New York Police Department (NYPD) confirmed that at least 29 people were injured, including 10 who were shot.

As the sudden shooting caused many subway stations to close or disrupted subway usage, the number of users turning to Uber and Lyft surged sharply, driving prices up. The New York Post reported that Uber fares from Sunset Park, New York, to Manhattan were more than double the usual rates. On Twitter, users shared testimonies of fare spikes.

Uber stated, "As always, Uber strives to be a resource for New Yorkers traveling around the city," adding, "If unintended charges occur on our platform during such emergencies, we will refund all of them." Lyft also released a statement saying, "We are taking measures such as adjusting fares for some riders who were charged prime time rates at the onset of the situation."