Washington weighs limits on Uber and Lyft surge pricing
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Some Washington state lawmakers want to ensure soccer fans attending next year's World Cup matches in Seattle won't pay exorbitant prices to catch an Uber or Lyft ride home.
Why it matters: Rideshare companies charge surge pricing during high-demand periods, which can cause prices to increase dramatically.
- One Uber and Lyft driver, Kyle Graham, told legislators that he drove a couple home from a Taylor Swift concert who were charged over $200 for the ride. Swift played in Seattle for two nights in 2023.
- "Not even half of the charge was to pay me as their driver," Graham testified during a Feb. 4 public hearing, calling the fee "an excessive amount that was exploiting these people's need."
Zoom in: Senate Bill 5600, which passed out of a policy committee last week, would cap rideshare prices during large-scale events at no more than 20% above what is paid to the driver.
- State Sen. Emily Alvarado (D-Seattle) told committee members that passing the bill would help ensure riders are charged fairly when Seattle hosts six World Cup matches next year.
- Event organizers are expecting up to 750,000 visitors for the Seattle portion of the tournament, which will take place over a three-week period between June and July.
What they're saying: "This bill protects riders and it protects drivers, to make sure that they can share fairly in the economic activity that's generated by these large-scale events," Alvarado, the bill's prime sponsor, testified during this month's public hearing.
- Seattle city officials and the local FIFA World Cup organizing committee are among those supporting the bill, which would also let local governments establish rideshare dropoff and pickup areas in certain cases.
The fine print: The bill defines a "large scale event" as one with at least 10,000 people at an outdoor venue or at least 1,000 people at an indoor venue and that requires a ticket or preregistration.
The other side: Lyft and Uber are opposing the bill, testifying in committee that the legislation would be hard to implement in part because it would require them to know advance details of large events.
- Uber's Zahid Arab added that rideshare fees cover significantly more than driver pay, to include airport fees, insurance and local taxes.
- The proposal would make "some trips unprofitable unless we increase prices to cover mandatory costs," Arab told lawmakers.
What's next: The measure still needs to pass the full state Senate and the state House before it could become law.