HONOLULU – Honolulu leaders pass limits on ‘surge pricing’ for ride-hailing companies in what Uber, Lyft call first such rule in U.S.

The measure would prevent “surge pricing” if increased rates are higher than the maximum fare set by the city. Uber sent emails to customers across the island of Oahu, which is where the rule would apply, urging them to oppose the rules that would impose “outdated taxi-style requirements on rideshare.”

Oahu taxi drivers have been at odds with those who drive for mobile apps that connect riders with nearby drivers. Taxi companies complain that companies such as Uber and Lyft create an unfair playing field because they face fewer restrictions.

David Jung, owner of EcoCab Hawaii wrote in testimony supporting the measure that it’s wrong to allow companies to set prices without city control.

Robert Deluze, owner of Roberts Taxis, said Uber and Lyft used surge pricing during pickups for military members coming off the USS Theodore Roosevelt and the USS Bonhomme Richard, the Honolulu Star-Advertiser reported last month. Military members paid as much as $221 to get from Pearl Harbor to Waikiki, he said, while the maximum taxi meter rate was $44 or less.

In a fact sheet, Uber said surge pricing gives drivers the incentive to work in busier areas, which lowers wait times for riders and ensures reliability.

Riders and drivers who submitted testimony opposing the measure said taxis aren’t as reliable or affordable as ride-hailing companies.

Uber driver Lisa Gonzales wrote that she drives to help support her family of six. During surge pricing, passengers have the option to accept or reject costs.

Sign up for Daily Newsletters Manage Newsletters

Copyright © 2020 The Washington Times, LLC.