Uber Update: NY State Announces that Uber "Agrees" to Cap Prices During "Abnormal Disruptions" of the Market

Update regarding "Uber: Why Dynamic Pricing is Usually Not Price Gouging, New York State announced that Uber has "agreed" to cap its dynamic pricing during "abnormal disruptions of the market" that will be limited to the normal range of prices it charged in the preceding sixty days. In addition, it will further limit the allowable range of prices by excluding from the cap the three highest prices charged on different days during that period."

In short, there will be more people stranded as a result of this agreement because there's now less incentive for Uber drivers to respond to hyper-surges in demand. This is straight forward economics. You can either let the market work and obtain market clearing prices that match supply to demand, or you can artificially lower prices through regulation and thus take more Uber drivers off the street when demand increases.