Proposed law to rein in Uber and Lyft surge pricing stalls in Washington state

Washington state lawmakers have abandoned an attempt to limit the cost of ride-hailing fares during large public events.

Senate Bill 5600 would have restricted fares to 120% of what a driver is earning for a ride during times of high demand, such as after stadium concerts, sporting events and similar gatherings.

For example, if a driver earned $83 for a ride, the total fare would be capped at $100 — or 120% of the driver’s earnings.

The unique proposal would have also increased transparency on how much drivers earn, requiring companies to include that information in the digital receipts provided to passengers.

The goal, said Sen. Emily Alvarado, the bill’s prime sponsor, was to keep the prices reasonable for passengers while making sure drivers earned a high enough fare that they’d be incentivized to offer rides during periods of high demand.

A prime motivation for the proposal was the 2026 FIFA World Cup, which will include six matches played in Seattle in June and July. The global event is expected to draw roughly 750,000 visitors to the state, creating traffic challenges associated with the games and related events.

Two Senate committees passed the legislation, but it was not pulled for a vote by the full Senate.

Sen. Alvarado didn’t provide details as to why the legislation stalled. She said by email that “some agreements were reached with the FIFA organizing committee to address some issues covered by the bill” — alluding to talks between the soccer organization and the ride-hailing companies.

The legislation also permitted local jurisdictions to designate specific zones where ride-hailing companies could safely pick up riders during big gatherings.

Uber and Lyft came out in strong opposition to the measure, which they said would not keep prices down for passengers and could make it difficult for their companies to cover costs including insurance, taxes and other expenses.

Drivers, customers and a representative for the FIFA organizing committee testified in support of SB 5600, though FIFA later softened its stance, according to sources. Other event organizers, including Seattle’s Blastfest music festival, shared concerns that the legislation wouldn’t have the desired effect of keeping prices down for riders.

An Uber spokesperson said via email that the company reassured the FIFA team that it has partnered with event organizers for the Super Bowl, national political conventions and others “to configure technology that meets their needs” and “to ensure a top operational capacity.” 

What that means exactly for surge pricing is unclear.

Ride-hailing companies differ in general as to how they split fares with drivers. Uber takes less than 20% of each fare on average for rides in the U.S. — but that’s after accounting for insurance, taxes and other costs, according to a post from the company’s policy team in December 2023. Lyft last year made a commitment that its drivers would earn at least 70% of rider fares each week — again, once the company deducts the external costs.

But two drivers testifying before lawmakers in Olympia last month said they might earn half or less than half of a passenger’s fare. One driver recounted a $200 fare following a Taylor Swift concert in which he earned less than $100 from the ride.

Alvarado, who represents West Seattle, said she will keep an eye on passenger fare and driver earnings during surge pricing periods.

“If we continue to see a lack of transparent pricing during large-scale events in the coming months, I remain committed to revisiting the issue next session in preparation for the World Cup,” said the Democratic senator.