Surge Pricing Could Be Way To Save Yellow Cabs, Council Plan Says

NEW YORK CITY — The struggling yellow cab industry could introduce surge pricing similar to that used by Uber in an effort to survive, according to a 77 page report expected to be delivered to the City Council Friday.

The proposal is one of several being suggested as a way to help yellow cabs fight back after seeing a massive drop in their market fueled by the rise in the number of app-based for hire vehicles.

Under the report's suggestions, yellow cab fares would change depending on the demand for rides. Currently, rates are fixed by the Taxi and Limousine Commission. The contents of the report were first revealed by the New York Post.

The report, headed by Councilmembers Stephen Levin and Ydanis Rodriguez, also makes suggestions on how yellow cab drivers can be helped to overcome crippling debt caused by falling medallion prices, including a scheme in which the city will help buy the debt.

The suggestions come after a spate of suicides among professional drivers that have been blamed on financial pressure.