NOTE: This post has been updated with information from Uber.

Right off the bat, it’s important to note that Keith Livingston is a fan of Uber, although he wasn’t thrilled after recently taking a 13-mile trip with the service that cost $247.50.

“I knew I was going to be paying more because it asks you to confirm, but it’s just crazy,” Livingston said Tuesday. ” You’re almost at their mercy because you don’t want to wait longer for a cab.”

It’s also a timely warning. One of Uber’s busiest nights is coming up as folks head out to celebrate New Year’s Eve, and “surge pricing” — raising fares when demand increases — probably will be in effect in Houston.

The trip went down like this: Livingston took an $18 Uber ride from Oak Forest to Rice Village and met some friends. From there, he went to the Texas Bowl to see Texas play Arkansas at NRG Stadium. His group left before the game ended, around 11 p.m., and he and his friends planned to split a fare back to Oak Forest. It would normally be about a $45 ride, with the various fees and taxes.

“We walked to the Fiesta parking lot and found our Uber driver,” Livingston explained in an email. “He told us it would be at a higher rate because of the surge pricing … but we were tired of walking and looking for a ride so we accepted.”

Tuesday morning, Livingston posted his details on Twitter, chiding Uber for the big up-charge and wishing he’d just waited for a cab.

“I love Uber, don’t get me wrong, but the price gouging needs to be brought to people’s attention,” he said.

The increase is part of a practice called surge pricing. Uber analyzes the probable or actual demand and factors for how many drivers are logged in. The company then sets a rate based on making it more lucrative for drivers to hit the road. Everything is done through a complex computer algorithm. Here’s how the company explains it:

Uber rates increase to get more cars on the road and ensure reliability during the busiest times. When enough cars are on the road, prices go back down to normal levels. It’s important to know that you’ll always be notified in big, bold print if surge pricing is in effect. When rates are more than double, the surge confirmation screen also requires you to type in the specific surge multiplier to ensure you understand what rates to expect.

Surge pricing has also peeved a lot of users, even loyal ones, and drawn a lot of unwanted attention to the company. Uber recently issued a mea culpa after surge pricing went into effect during a hostage situation in Sydney’s financial district, as folks were trying to get out of the area.

With many people out and about in Houston on Wednesday night, and hopefully wanting to safely get home if they’ve been drinking without driving, the demand for Uber and cabs is likely to be high. That means surge pricing is almost assured.

UPDATE: Worldwide, Uber expects to provide 2 million rides in 24 hours, according to a press release. They also offered tips, such as splitting fares and planning trips for off-peak times. To time your trip accordingly, Uber released this chart with their anticipated demand for the night.

It’s up to users how to respond when the higher prices go into effect, and it’s safe to say cabs will be as busy during the same timeframe. So riders can wait it out for prices to come down, or find an alternative. If enough choose another method, Uber will certainly respond to that, too, as supply and demand work both ways. Cabs might also try to flood certain areas to make themselves available when Uber can’t meet demand.

The real details of the new company’s effect, however, remains largely obscured, although Uber remains hugely popular in Houston. Uber is secretive about the number of drivers it has in service, and has challenged efforts to details its operation in Houston. The Chronicle has asked for the permit applications for the first wave of Uber drivers, but city officials, citing a request by Uber, have asked the Texas Attorney General to weigh in on whether the applications are public record.

Based on the number of pages city officials said are involved in the public records request on file, about 400 permit applications have been received.

Prior to Nov. 1, when the company and a competitor, Lyft, were operating in Houston, no one really knew how many drivers there were. Lyft later pulled out of Houston rather than comply with the new rules.

Since permitting went into effect, city officials confirmed 63 permanent or temporary permits had been issued. Then the company complained about the city releasing the number and Houston’s regulatory affairs department said it would need to check with the AG’s office.