Ridesharing apps like Uber and Lyft have dramatically changed the way we travel. The ease with which we can leave our homes and reach our destination without touching a steering wheel is commendable.
However, these services have been regularly questioned about their business practices and the way they deal with customers and driver.
A report of ABC7 has uncovered a fare scam, in which drivers used surge pricing to earn higher fares.
According to ABC7, they came to know about the scam after communicating with the drivers who frequented around Regan National Airport. ABC7 claims that fare scam is present across the whole USA.
According to the report, every night, ride-hailing drivers of Uber and Lyft would turn off their mobile apps, which resulted in an artificial shortage of drivers in the area.
Since the availability decides the pricing, it causes a surge in price. Once the price reaches a desirable amount, drivers turn on their applications. Drivers from behemoths like Lyft and Uber have used this tactic to surge the price.
According to a driver who has employed this tactic, they know the schedules of plans, so all the drivers turn off their application 5 minutes before the plane lands. This results in a price surge, and they can make an additional $10 to $20.
Who is wrong? Uber and Lyft or the drivers?
The drivers claimed that it is necessary since ride-hailing services have continued to cut pays of the drivers.
One of the drivers said that Uber does not pay them enough, and the company is frauding people by taking a 30-40 percent cut on the income.
Uber released a statement claiming that the scam at Regan Airpot is an isolated event, but reports suggest otherwise.
However, Uber has not released an advisory on how to avoid this price surge scam.