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Uber Surge on New Year's Eve Could Mean $100 Fares After Midnight

By Ted Cox | December 31, 2014 2:16pm
 Uber put out this graph explaining surge pricing with supply and demand estimated for midnight New Year's Eve.
Uber put out this graph explaining surge pricing with supply and demand estimated for midnight New Year's Eve.
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Uber.com

DOWNTOWN — The Uber ride-sharing service is warning that surge pricing could push fares above $100 in Chicago, just when everyone wants a ride shortly after midnight on New Year's Eve.

"With more than two million rides tonight, we expect New Year's Eve to be our busiest night ever — which means fares could get expensive," Uber warned in a statement to riders, repeated in a blog post.

Pleading that "busy nights require surge pricing to get enough cars on the road and ensure you always have a reliable ride," Uber warned that "on New Year's Eve, everyone is looking for rides at exactly the same times, and Chicago has an incredibly busy night ahead."

 CTA rides are free on trains and buses from 10 p.m. New Year's Eve to 4 a.m.
CTA rides are free on trains and buses from 10 p.m. New Year's Eve to 4 a.m.
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Flickr/CTA

Uber said it expected demand to peak between 12:30 and 2:30 a.m. Thursday, and that surge pricing could mean "an average ride at 2 a.m. could be over $100."

Uber suggested its clients "catch a ride right when the ball drops at midnight or wait a couple hours for prices to return to normal."

"We are proactively communicating to riders that demand will be high tonight after midnight," confirmed Chris Taylor, Uber's Chicago general manager. "Many riders are new to the system or may not have requested a ride during a period of heavy demand when dynamic pricing is in effect.

"As always, riders are notified in advance if rates are increased, and riders have the option to estimate their fare," Taylor added, a method usually put to the passenger by asking that person to confirm a surge "multiplier."

Taylor couldn't give an estimate for what the multiplier might be for experienced Uber riders New Year's Eve. Yet the new ride-sharing ordinance passed earlier this year allows for surge pricing, as long as the fare is presented in advance to the rider in dollars, and not in terms of a multiplier — thus Uber's early warning that peak fares could top $100.

Taxi cabs have their rates set and will not employ surge pricing, but demand for them figures to be high as well after midnight.

Uber attempted to soften the blow with a public-relations maneuver giving riders the opportunity to donate some of their fare on New Year's Eve and into New Year's Day to Mothers Against Drunk Driving. From 6 p.m. Wednesday to 6 a.m. Thursday, riders can opt to have a dollar of their fare donated to MADD by entering the promotional code MADDNYE.

 

The Chicago Transit Authority, meanwhile, is offering free rides on all trains and buses from 10 p.m. Wednesday to 4 a.m. Thursday.

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