In South Lake Tahoe, residents are evacuating as the Caldor Fire is spreading in that direction. Evacuation areas include places in California and Nevada. However, as many people were trying to get out as quickly as possible, some used the app Lyft, but the prices were much higher than usual.
The rideshare app is now facing backlash about raising the prices because of the need to get out of the area. Some price increases include an XL vehicle costing $1,300 to $1,500, when they’re usually around the $200 mark. These high prices soared Tuesday morning, but had moved back down into more normal ranges by the afternoon.
Some residents in the area may not have been able to evacuate using their own vehicles, or didn’t own vehicles to get out safely. They were likely depending on third party rideshare options to leave the area. Two main rideshare app competitors that would likely come to mind are Lyft and Uber, but Uber didn’t have drivers in the area. This left residents to turn to Lyft as their way of evacuation.
While many were accusing Lyft of gouging prices, part of the way the app works is to raise prices when there are far more ride requests than drivers. The higher prices would get more drivers to that area. For regular events like concerts, shows, or rush hour in populous cities, this would seem like a good idea for the rideshare app. However, the demand was from people trying to get to safety from a fire. As soon as Lyft connected the evacuation order with the app prices rising, they capped the pricing.
While rideshares do offer many people another method of transportation, there are still issues that can affect people. In this instance, it was the price surge that was enabled because so many people needed rides in a serious situation. In other cases, issues can arise when an accident occurs. If you’re in a dispute with a rideshare company, you can seek justice with our help.
The Rideshare Law Group stands up for those who have been injured in rideshare accident. We’ll make sure to find out who was responsible for the accident and will fight for you to get the recovery you deserve. To go over your case and your options, reach out to us today for a consultation. We’re ready to help.