Expect to pay more for Uber, Lyft rides on New Year's Eve

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By Tami Hoey By Tami Hoey

PHOENIX -- From uber and Lyft to good old taxicabs, there are a lot of ways to get around safely on New Year's Eve. But some transportation could cost you a whole lot more than normal on December 31.

In years past, taxis were the only game in town. But then came the apps uber and Lyft. And unlike taxis, they can raise prices when demand is high.

Uber calls it "surge" pricing.

Here's how the uber website explains the price increase: "With surge pricing, Uber rates increase to get more cars on the road and ensure reliability during the busiest times. When enough cars are on the road, prices go back down to normal levels. It’s important to know that you’ll always be notified in big, bold print if surge pricing is in effect. When rates are more than double, the surge confirmation screen also requires you to type in the specific surge multiplier to ensure you understand what rates to expect."

Meantime, Lyft calls it "prime time."

"Prime time exists basically as an incentive to get people out on the road," says one Lyft driver. "When people know there's going to be a higher percentage of prime time, they'll be like, all right, I might as well drive these few hours."

For the first time ever, Lyft is raising the cap on prime time rates -- up to a possible four times the normal fare.

But Uber will reportedly have no cap on surge pricing. They released video showing how riders will have to confirm twice that they've seen the high rates and agree to them. They expect the highest demand between 1:00 and 2:00 a.m.