Surge pricing by Transportation Network Companies (TNCs) like Uber and Lyft can be especially harmful to riders because it turns transportation from a predictable necessity into an unpredictable financial burden. Often at the exact moments when people have the fewest alternatives.
 
Surge pricing is a system used by TNCs where prices temporarily increase when demand for rides is higher than the number of available drivers. As these events occur, and surge prices come into effect, fares can be 2x-5x the normal rates. These exorbitant rates occur while drivers only receive a fraction of the increases in fares. This allows TNCs to capture disproportionate profits during periods of public vulnerability.
 
This legislation would limit surge prices set by TNCs to 20% above what a driver is paid for that trip. A 20% cap above what a driver is paid would still allow companies to cover platform and operating costs, allow dynamic pricing, while continuing to attract the necessary number of drivers to the road. But it would prevent extreme markups disconnected from the driver’s actual earnings.
 
Whether it’s a large-scale sporting event or concert, or an event that limits public access to mass transit, TNCs should not be able to take advantage of vulnerable riders. Pennsylvania law already prevents price gouging during declared emergencies but says nothing about large scale events such as concerts, sporting events, or events that drastically impact public transportation.
 
The simple fact is that rideshare transportation has evolved from a convenience service into critical infrastructure for many communities, and many Pennsylvanians believe essential transportation should remain reasonably accessible, predictable, and fair.
 
Please join me in sponsoring this legislation.