New Year ride-hail surge pricing continues to ease, Obi data suggests
- Perry Richardson
- Jan 3
- 2 min read
Updated: Jan 4
Ride-hailing price surges around New Year appear to be moderating, according to new analysis from US-based price aggregator Obi, which found that fare volatility during the holiday period has declined steadily since 2022.
Data covering the eight-day period from Christmas Eve to New Year’s Day shows that the difference between high and low daily average prices across major US ride-hailing platforms has narrowed significantly. In 2022, the variance stood at $7.91. That figure fell to $4.48 in 2023 and dropped again to $2.34 in 2024.
Obi attributed the shift to changes in how ride-hailing operators manage supply and demand during peak periods, suggesting companies such as Uber and Lyft have taken a more proactive approach to limiting extreme price movements during the festive season.
The New Year period has traditionally been one of the most volatile for ride-hailing fares, driven by fluctuating demand, reduced driver availability and time-sensitive journeys late at night. High-profile fare spikes in previous years had drawn public criticism and regulatory attention in several major cities.
Pricing volatility during the festive period has fallen sharply over the past three years, reducing the scale of New Year fare spikes historically associated with ride-hailing platforms
Ashwini Anburajan, chief executive of Obi, said the week covering Christmas and New Year has historically combined very high and very low volume days, creating sharp swings in pricing. She added that the period also sees a higher share of riders with urgent travel needs, many of whom would normally drive or use public transport.
According to Obi, unexpected surges or long waiting times during these periods can quickly lead to customer frustration, giving platforms a strong incentive to smooth pricing where possible. The company said its data indicates that operators have increasingly prioritised fare stability to protect consumer trust and usage.
Obi’s analysis is based on hundreds of thousands of rides booked through its app, which allows users to compare real-time prices across multiple ride-hailing services. The company argues that price transparency itself has become a competitive pressure on platforms, limiting their ability to impose sharp surges without losing bookings.
Separate research from the US National Bureau of Economic Research has previously estimated that failure to compare ride-hailing prices costs New York City residents around $300 million a year, underlining the financial impact of pricing dispersion even outside peak periods.
