Report: In effort to compete with online car services, D.C. cabs may employ 'surge pricing'
WASHINGTON (WJLA) - The Washington Post reports that D.C. taxicabs may soon be allowed to employ a tactic called "surge pricing" in an effort to compete with the growing popularity of online car services like Uber.
D.C. Council members Mary M. Cheh (D-Ward 3) and David Grosso (I-At Large) have introduced legislation that would allow cab drivers to price their rides according to demand rather than their meters if the rider books the cab via a smartphone or tablet.
Mobile-dispatched car services have been springing up throughout the district and across the country recently.
The Post reports that D.C. would be one of the first cities in the U.S. to allow "surge pricing."
Proponents of the move say it would allow riders to comparison-shop, boosting healthy competition. However, opponents say the practice could lead to price-gouging for rides in the district.