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Uber

Uber vows not to gouge during snowstorm

Kaja Whitehouse
USA TODAY

NEW YORK — Ride-sharing company Uber on Monday vowed to keep its promise to cap prices in the oncoming Northeastern snowstorm, which has been described as "unprecedented" and "dangerous."

"Per our national policy, during states of emergencies, dynamic pricing will be capped," Uber said in a statement Monday, referring to its so-called surge pricing model, which jacks up prices during times of high demand.

The San Francisco start-up also promised that "all Uber proceeds" from the storm "will be donated to the American Red Cross to support relief efforts."

The ride-sharing company found itself in the crosshairs of regulators last year because of its surge pricing, which left stranded New Yorkers with sky-high bills during a January 2014 storm.

Angry users took to social media to complain, including comedian Jerry Seinfeld's wife, Jessica, who Instagrammed a receipt for a $415 Uber ride along with the hashtags #neverforget and #neveragain.

New York Attorney General Eric Schneiderman launched an investigation into Uber's pricing model following the flurry of complaints.

The company in July agreed to cap prices during emergencies — a policy that it also extended nationally.

Monday's snowstorm will mark Uber's first test of its new emergency pricing policy in New York.

Schneiderman's office "will be working with Uber to ensure last year's price cap agreement is in full effect," said Elizabeth DeBold, a spokeswoman.

New York City streets will closed to all but emergency vehicles starting at 11 p.m., officials said. But Uber's price cap extends nationally, so it will apply in Boston and New Jersey, which are being being snowed under.

Meanwhile, the storm, which will leave as much as 30 inches of snow in some regions, is expected to extend into the afternoon on Thursday.

Also in NYC, 1,500 yellow taxi cabs promised free rides on Monday for any emergency responder unable to get to work due to the snowstorm. The cabs, members of the Greater New York Taxi Association, also promised free rides for "stranded disabled and elderly people" during the storm.

Anyone needing a free cab needs to call 311 and the request will be dispatched to the group, said Ronn Torossian, spokesman for the Greater New York Taxi Association.

Uber has vowed not to gouge riders during the storm.
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