The New Jersey Senate Transportation Committee advanced legislation to ban transportation network companies like Uber or Lyft from implementing surge prices during states of emergency.
“Surge pricing by ride-share apps like Uber or Lyft during extreme weather or other emergency events puts the public at risk, prioritizing profit over people’s well-being,” state Sen. Angela V. McKnight, D-Hudson, said. “When emergencies occur, we want to ensure every person can find shelter and safety. Banning this exploitative practice will make it easier to find a safe, affordable ride home in times of crisis.”
The bill, S-1797, advanced by a 6-0 margin.
It would prohibit a transportation network company from charging surge prices for a prearranged ride during a natural disaster or emergency in which a state of emergency has been declared in an affected area. Any increase in the fare rate more than two times the usual fare rate would constitute surge pricing.
A “State of Emergency” is a natural disaster or emergency officially declared by the President of the United States or the Governor of New Jersey. Similar legislation exists in New Jersey to prohibit the sale of merchandise at excessive prices during a state of emergency, but this does not include services.
