Uber Reverts Back to Surge Pricing in New York After One Day

"Footing the bill for higher driver costs came at a significant expense to Uber with over $100,000 in additional payments."

With most subway lines suspended or running on limited service, getting around New York has been nothing short of nightmarish. Yesterday, amid cries of price gouging, San Francisco-based Uber (which allows users to hail a black car from their phone) decided to postpone “surge pricing” in the wake of Hurricane Sandy. The company decided to turn off surge pricing for customers, but to still pay drivers surge pricing in order to incentivize them to get out there and provide rides to stranded New Yorkers.

Now, in an email sent out to Uber NYC users, the company claims that just one day of this pricing structure has resulted in a $100,000 loss to the company, “something we can’t continue indefinitely without breaking the bank.”

According to Crunchbase, the company has raised $49.5 million in venture funding.
Read More

Uber Reverts Back to Surge Pricing in New York After One Day