Washington State Proposes Cap on Uber and Lyft Surge Pricing During Major Events

In response to growing concerns over high ride-hailing fares during large events, Washington state lawmakers have introduced Senate Bill 5600. This bill aims to regulate the pricing policies of companies like Uber and Lyft, ensuring that passengers are not subjected to excessive fare hikes during significant gatherings. The proposal comes as Seattle prepares to host multiple 2026 FIFA World Cup matches, which could bring an estimated 750,000 visitors to the city over three weeks.

What Senate Bill 5600 Proposes

The bill seeks to establish clear limits on surge pricing, defining “large-scale events” 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 legislation, ride-hailing companies would be prohibited from charging more than 20% above the standard fare during these events. This means if a standard fare is $50, companies would not be allowed to charge more than $60 for the same trip during high-demand periods.

Senator Emily Alvarado (D-Seattle), the bill’s lead sponsor, explained that this measure is designed to protect both passengers and drivers, ensuring fair pricing while maintaining demand for ride-hailing services. “This bill protects riders from extreme price hikes while making sure that drivers get fair compensation during major events,” she said.

Why the Bill Was Introduced

The introduction of Senate Bill 5600 follows complaints from Washington residents and visitors who have experienced skyrocketing ride-hailing fares during major events. The FIFA World Cup, expected to be one of Seattle’s largest events in history, has heightened concerns about price gouging, as previous major sporting and music events have resulted in fares doubling or tripling during peak hours.

Alvarado pointed out that without regulation, passengers often feel they have no alternative but to pay extreme fares, especially when public transportation options are limited or unavailable late at night.

Opposition from Uber and Lyft

Uber and Lyft have pushed back against the proposed surge pricing cap, arguing that surge pricing helps balance supply and demand by encouraging more drivers to be on the road during busy times.

A spokesperson from Uber, Zahid Arab, stated that implementing such a cap could make it difficult to cover operational costs, which include driver earnings, insurance, and local taxes. “Rideshare pricing is based on more than just driver pay. Limiting surge pricing could make some trips unprofitable,” Arab said.

Additionally, both companies argue that determining which events fall under the bill’s restrictions could be complicated. Unlike ticketed concerts or sports matches, many large events—such as protests, parades, or impromptu public gatherings—may not be officially announced in advance, making it harder for companies to predict and comply with pricing regulations.

What’s Next for the Bill?

As of now, Senate Bill 5600 has cleared the policy committee and is moving forward in the legislative process. For it to become law, it must be approved by both the Washington State Senate and House of Representatives before being signed by the Governor.

If passed, this legislation could set a national precedent, encouraging other states to regulate surge pricing during major events. The debate highlights the delicate balance between protecting consumers from unfair pricing and ensuring that drivers are properly compensated.