Washington state lawmakers have introduced Senate Bill 5600, a new proposal aimed at capping surge pricing by ride-hailing companies like Uber and Lyft during major events. The bill comes as Seattle prepares to host the 2026 FIFA World Cup, which is expected to bring hundreds of thousands of visitors to the city.

The proposal seeks to regulate fare increases during high-demand times, ensuring passengers are not charged excessively while also maintaining fair earnings for drivers. If passed, this bill could have a significant impact on rideshare pricing policies in Washington and potentially influence similar regulations in other states.

What Senate Bill 5600 Proposes

The bill specifically limits surge pricing by ride-hailing companies during large-scale events, which it defines as:

Outdoor gatherings with at least 10,000 attendees

Indoor events with more than 1,000 attendees that require tickets or prior registration

Under the proposed law, Uber, Lyft, and similar services cannot charge more than 20% above the standard fare during these events. For example, if a standard fare for a trip is $10, the maximum charge allowed under the bill would be $12.

Senator Emily Alvarado (D-Seattle), the primary sponsor of the bill, argues that this consumer-friendly legislation is necessary to prevent price gouging when demand for rides is high.

Why Is the Bill Being Introduced?

The idea behind the bill is to protect consumers from excessive fares while still allowing drivers to make fair earnings. Events like sports matches, concerts, and large conferences often lead to surge pricing, where fares can double or even triple compared to normal rates.

With Seattle set to host multiple 2026 World Cup matches, lawmakers anticipate up to 750,000 visitors arriving in the city over a three-week period. Many will rely on ride-hailing services, which could lead to extreme fare increases if left unregulated.

“This bill protects both riders and drivers, ensuring they can fairly share in the economic activity generated by large-scale events,” said Senator Alvarado during a public hearing.

Opposition from Ride-Hailing Companies

Uber and Lyft have raised concerns about the bill, arguing that limiting surge pricing could lead to negative consequences for both passengers and drivers.

Uber spokesperson Zahid Arab stated that surge pricing helps ensure availability of rides by encouraging more drivers to be on the road during high-demand periods.

Lyft representatives argue that a cap could discourage drivers from working during big events, leading to longer wait times for passengers.

The companies also highlight that ride fares cover more than just driver pay, including insurance costs, local taxes, and operational expenses.

Some critics believe the bill could reduce the number of available drivers, making it harder for passengers to find rides when they need them most.

Current Status and Next Steps

As of now, Senate Bill 5600 has passed the policy committee and is moving forward in the legislative process. The bill still needs approval from both the full state Senate and the state House before it can become law.

The debate highlights the ongoing challenge of balancing consumer protection and business operations in the rapidly evolving gig economy. If passed, this law could set a precedent for other states considering similar restrictions on ride-hailing fare policies.

Many stakeholders, including transportation experts, consumer advocacy groups, and gig economy workers, are closely monitoring the bill’s progress as it could significantly reshape the ride-hailing industry in Washington and beyond.