Uber prices soar during TTC shut-down

Prices for the ride-sharing service Uber soared during a Toronto transit shutdown, with some users reporting prices increased “five-fold.”

The ride-sharing company uses an algorithm called “dynamic pricing” which sets fares based on demand for rides.

"During times of peak demand – when there are not enough drivers on the system – fares increase so as to incentivize more drivers to come onto the platform," the company said in a statement.

Uber says that once they were aware of the transit shut-down, “We immediately took action to help commuters by capping our dynamic pricing and sending messages to all driver partners encouraging them to log onto the platform and connect with riders.”

CTV Toronto’s Heather Wright reported that prices for an Uber ride went up four times the average rate during the outage. BNN's Michael Kane reported seeing fares up "five-fold" during rush hour.

Uber says that using dynamic pricing allows users of the service to at least have the option to proceed with paying more for a ride, instead of there being no drivers available.