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Councillors say the city’s new livery bylaw now being drafted by bureaucrats must ensure passengers won’t get “burned” by so-called surge pricing — a fee scheme currently used by rideshare companies like Uber, and soon Calgary taxis.

“It goes to show that a regulated industry works better because you’re not gouging your customer,” said Ward 5 Coun. Ray Jones. “I’d like to see regulated rates so that people aren’t being burned.”

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Surge pricing recently made headlines after an Edmonton man was charged nearly nine times the regular fare on New Year’s Eve trying to get to St. Albert from a wedding in the south end of the capital.

Uber ultimately refunded half the $1,114 bill after Matt Lindsay went public with his complaint, despite knowing the company charges premium rates during peak hours.

The company uses surge pricing to entice its drivers to hit the streets and serve more customers when demand is high. Uber customers are warned in advance through the smartphone app about the price hike before accepting the ride.