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Honolulu Considers Cap on Ride Hail Surge Prices

The Honolulu city council this week voted to cap how much Uber, Lyft and other ride hailing companies can surge their prices during peak hours, putting in question the future of the services in the city.

The measure won approval 6-3 in the city council on Wednesday, the Honolulu Star Advertiser reported.

Uber and Lyft say Honolulu is the first city to consider price controls on their service. The companies say surge pricing is a market-based key to their business model – because more drivers work when demand is at its highest.

“If implemented, this bill will restrict innovation, limit consumer choice and put the availability of Uber service on Oahu at risk,” an Uber spokeswoman said, according to the Star Advertiser.

Mayor Kirk Caldwell and officials with the Department of Customer Services say oppose the cap. Caldwell has said he thinks prices should be market-based.

Caldwell has 10 working days to sign the bill, veto it or allow it to become law without his signature.


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