Advertisement

Car service Uber costing more during busier periods

WATCH ABOVE: Car service Uber charging customers more during busy periods, a common practice called surge pricing. But as Peter Kim reports it’s making customers feel like they’ve been taken for a ride.

TORONTO – The ride down to the party cost Connor Schaufler $17.00; the ride back, $227.00.

“We were kind of shocked. We woke up in the morning and felt blindsided,” said Schaufler, who was attending a Halloween party at the Thompson Hotel.

He used Uber, a location-based car service connecting willing drivers with people who need a ride within a reasonable proximity.

The trip from near Bayview Avenue and Davisville Avenue to the Thompson Hotel is around 14 km and takes approximately 20 minutes. On Halloween night the rates were increased, a practice known as surge pricing, to meet increased demand. Although unpopular it’s a commonly used practice in the retail and service sectors.

Story continues below advertisement
“The biggest concern when it comes to consumer backlash concerning variable (surge) pricing is when it affects different categories of people differently at the same time. And so that’s something companies have to watch out for,” said marketing strategist Brynn Winegard. “Companies [also] have to be careful that they’re using variable or peak pricing within reasonable margins, especially when the price is not known until the end of the service.”
Uber did not respond to our request for comment but on their website clearly state that surge pricing is used and that “customers will always be notified in big, bold print if [it] is in effect.”

Schaufler says there was no indication he would be saddled with a $227 bill: “That night we had nothing on the app that popped up that indicated the surge pricing, the driver had no indication of how much the surge pricing was going to be.”

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Online there were others who seemed spooked by Uber’s Halloween rates.

Story continues below advertisement

In the U.S. one woman had to crowd source her Uber fare after it topped $300 dollars on her birthday.

After raising the issue with the company Schaufler receive a 25% discount, and now has second thoughts about using the popular location-based car service.

Sponsored content

AdChoices