Surge pricing cap on Uber stems from 2015 Nevada law

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FILE – In this Nov. 15, 2019, file photo is an Uber office in Secaucus, New Jersey, USA. Uber is giving its U.K. drivers the minimum wage, pensions and holiday pay, following a recent court ruling that said they should be classified as workers and entitled to such benefits, the company announced Tuesday, March 16, 2021. (AP Photo/Seth Wenig, File)

LAS VEGAS (KLAS) — Uber is blaming the lack of drivers in the Las Vegas valley on an inability to charge “surge” pricing. This is when the ride costs two or three times as much to incentivize new drivers.

The company said Nevada’s declaration of emergency is preventing it.

8 News Now checked on this, and the Nevada Transportation Authority says it stems from a law passed in 2015, following stories of high prices during natural disaster events, like hurricanes. It prevents companies, like Uber or Lyft, from charging more than a base rate during emergencies.

Gov. Steve Sisolak’s Office sent us a statement about the issue, which reads:

As the COVID-19 response continues to evolve and change, the Administration has remained committed to being flexible and working with stakeholders on issues as they arise, including this one. We are aware that agencies are reviewing this issue and working towards potential solutions. As more information is available, we will share it with the press and the public as soon as possible.

Meghin Delaney, communications director, Office of the Governor

The regulation that limits surge pricing during a declared state of emergency can be read in full here. It was enacted on September 11, 2015.

It states, “During an emergency, as defined in NRS 414.0345, a transportation network company shall not charge a fare in excess of the base rate on file with the Authority on the date of the emergency.”

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