Travel Tips

Travel Tip: Why Rideshare Companies are Applying Surge Pricing

lyft_car_on_roadIf you’ve already jumped on the rideshare bandwagon, you know that finding a car through services like Uber and Lyft can be pretty convenient and even affordable.

But those days may be over soon.

Unlike taxis, ride­share companies can raise their rates sky­-high during rush periods like the holidays. It’s called surge pricing.

In fact, it got so bad that the Better Business Bureau rated Uber an F—.

Yes, you heard that right, an F—for failing to deal with all the billing complaints it’s received.

Does that mean ride­sharing is a no go? Of course not.

It can still make sense, but you have to empower yourself with the right information. Just because you can punch up a last­-minute ride through your smartphone doesn’t mean you’re getting the best deal.

The good news is things may be changing as these services become more competitive.

Uber recently agreed to limit surge pricing during emergencies, like winter storms, and Lyft recently agreed to cap its pricing to 200 percent of normal rates…gee, thanks a lot, guys.

For more information, visit the Car Travel Archives.

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