Uber Might Be Getting Kicked Out of Massachusetts
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Uber’s license to operate in Massachusetts is under review after the ride-sharing company charged customers surge pricing during a state of emergency declared for a nor’easter blizzard in the state earlier in 2018.
During the early March snowstorm, Massachusetts Governor Charlie Baker declared a state of emergency. As part of those measures, the state’s Department of Public Utilities, which oversees ride-sharing operations, sent notices to all ride-sharing companies alerting them to suspend surge pricing during the storm.
Uber allegedly charged passengers surge pricing anyway. If the ride-sharing company is found to have violated the regulation, its license to operate in the state could be revoked, and it could be charged fines based on its revenue from the storm.
“The intent was to avoid circumstances where companies would be jacking up prices during a state of emergency,” Massachusetts State Rep. Aaron Michlewitz, who wrote the original bill, told The Boston Herald. “The intent of the legislation was to avoid any company taking advantage of the consumer during a state of emergency.”
Now the state’s Department of Public Utilities is demanding Uber’s data on its fares from just before and during the nor’easter, as well as its revenue and amount of riders it had during the storm.
Uber disputes the accusations, saying its surge pricing did not violate the state law. According to Uber, the law only precludes them from raising the base rate during a state of emergency. This is a different type of surge pricing charge than how Uber calculates its surge, the company claims.
TPG reached out to Uber for comment, but did not hear back by time of publication. The ride-sharing company did, however, tell The Boston Herald that it was “confident” it complied with the law during the state of emergency. “Our team was in communication with the DPU during the state of emergency,” an Uber spokesperson told the Herald. “We look forward to working with regulators on a quick resolution.”
Thursday is Uber’s deadline to respond to the Massachusetts state government’s request.
Featured image by Leon Neal / Getty Images.
Welcome to The Points Guy!
Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new card in your first three months of card membership. Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants with your card within the first 3 months of membership.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new Card in your first 3 months.
- Plus, earn up to $100 back in statement credits for eligible purchases at US restaurants with your card within the first 3 months of membership.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees