Uber To Cap Surge Pricing Under Agreement With New York City

Uber reached a deal with New York Attorney General Eric Schneiderman Tuesday, agreeing to cap pricing during emergencies after months of legal wrangling. Schneiderman announced the news on Twitter, saying the agreement “provides consumers with critical protections.”

Schneiderman’s office announced in April that it had opened an investigation into claims that Uber, the car-hailing app that has sought to replace taxis, was engaging in price gouging by systematically raising its prices during times of bad weather, for instance, as well as during holidays or at other busy times in New York. The practice has drawn the fury of customers who request a ride only to find out that the bill during these surge times might be up to eight times the usual price.