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In response, Uber turned off the surge fee after just 45 minutes.
On Wednesday morning, it imposed a special "surge" fee — a rate of at least double the normal fare.
Taxi associations argue that black cab meter rates are fixed, whereas Uber's fares are set by the company, which enables it to charge a "surge" fee during busy periods.
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As a temporary remedy for the situation, Uber is taking at least $100,000 out of its own pocket to pay the surge fees to the drivers and not passing them on to the riders, Mr. Kalanick said.
However, he said this solution would not last long because it could cost the company too much money, and Uber may have to turn surge fees back on for passengers later.
Users who are fed up with Uber or Lyft's surge fees can submit them to Gett and receive full Gett credit on the price of those surge fees to be used later.
Grab said it has "adjusted" its prices to include a cap on surge fees in order to manage what is likely to be a lot more demand.
Beyond the $100 maximum payout for Surge fees, Gett is also giving $1,000 in credit to the user who submits the highest amount of surge fares in all of New York.
Wachovia, the No. 4 U.S. bank, said Monday first-quarter earnings rose 7percentt, helped by surging fees and a doubling of trading profits.
Flywheel, the no-surge-fee taxi startup that hopes to challenge on-demand ride services like Uber and Lyft, is expanding its TaxiOS platform.
Scottish university principals and Scottish ministers feared that there would be a surge in "fee refugees" heading north to avoid the £9,000 a year fees for English colleges authorised by the UK government.
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