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Home / Business

Uber price spikes on storm demand

Tamsyn Parker
Tamsyn Parker
Business Editor·NZ Herald·
10 Apr, 2018 08:30 PM2 mins to read

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The heavy winds in Tuesday night's storm pulled trees down onto cars and homes, with 100,000 homes and businesses losing power.

Uber prices have doubled in Auckland as demand surges after last night's storm.

Phil Welch who normally uses the ride service to get from Mt Eden into the central city about 6.45am said he normally paid between $12.27 and $12.72, but this morning the cost was more than double at $27.96.

Welch said he had seen price spikes around peak hour times in the past.

"But I have never known it to be this much."

Another user who comes into the central city from Herne Bay said he normally paid $6.72 to $6.98 but would have paid $18.33 if he used the service today.

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The storm has disrupted travel around the city. Traffic lights are out in many areas, roads are covered in debris and rail services are not fully operating.

A spokeswoman for Uber said it used dynamic or "surge" pricing, which changed in response to fluctuations in demand.

"Dynamic pricing ensures that passengers who want a ride can always get one, and this will come into effect during times of heavy demand such as during bad weather or popular events."

The spokeswoman said after the introduction of upfront pricing in Auckland last month users see a quoted fare in the app before they requested a ride so users so they know how much they should expect to pay.

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"A notification will also highlight that fares are slightly higher than usual due to increased demand."

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