Riders, beware! Uber, Lyft implementing "surge pricing" on New Year's Eve, as demand increases

MILWAUKEE (WITI) -- New Year's Eve is a night we can expect to pay more on things like dinner and drinks. But there's one thing that may cause a few of us to start out 2015 in debt -- the ride home!

Those using an app to get around on New Year's Eve could be hit with fees they may not be expecting!

"Hopefully tonight is going to be the busiest night," Uber driver Karim Abidi said ahead of the start of New Year's Eve celebrations in Milwaukee.

Abidi has a lot to be thankful for this year. The Tunisian native says after five years in America, he has finally landed a good job.

"I'm happy to work for Uber," Abidi said.

He was all smiles as he thought about his night ahead on New Year's Eve.

"I can't wait!" Abidi said.

Besides the guaranteed business, he had something else working in his favor on this holiday.

An Uber spokeswoman said last year, New Year's Eve was one of Uber's busiest days. The company has quadrupled its presence compared to last New Year's Eve. It's now operating in over 260 cities across the world -- up from 66 last year.

So how much -- or how little -- might riders pay? That's unpredictable due to Uber's price algorithm, which charges riders inordinate sums of money during periods when its cars are most in demand. (Hello, New Years Eve!)

The higher demand, the higher the fare.

"Surge pricing is to get more drivers on the road.  The purpose is not to get more money," Abidi said.

On Halloween, an Uber ride that would have normally cost $17 cost a West Allis man more than $170.

Lyft says they'll cap price increases at 400% on New Year's Eve, which could make a $15 ride $60.

On Brady Street, FOX6 News found some willing to pay for the convenience, and knowing they'll get home safely.

"Hopefully we do well enough at the casino where the 400% doesn't matter. We'll see," one person said.

Others...not so much.

"If people are willing to pay it, that's their prerogative. I don't agree with it," one person said.

Lyft and Uber say before you're charged the higher fare, you have to agree to it.

Cheaper options on New Year's Eve might be a taxi. Milwaukee taxi companies don't have surge pricing. Also -- Milwaukee County Transit buses, which are free on New Year's Eve.

CLICK HERE to learn more about Lyft's New Year's Eve pricing via a Lyft blog post.

CLICK HERE to learn more about Uber's New Year's Eve pricing, via an email sent to customers.

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