Did Uber's surge pricing just backfire?
Source: Jen Wilson

Despite ubiquitous warnings ― even from the company itself ― New Year's Day found some revelers with a hefty Uber bill on top of their hangovers.

But it seems in at least some cases, Uber Technologies' much-discussed dynamic pricing caused New Year's Eve party-goers to steer clear of it as well as similar ride-share company Lyft.

"Drivers say potential riders were scared off by looming surge prices from the app-friendly transportation network companies, and that streets were oversaturated with pink-mustachioed vehicles, the sign of a Lyft car, seeking big New Year's Eve dollars," reported The Examiner in San Francisco.

And that lower demand meant lower rates for those who did book a ride.

Both Uber and Lyft use algorithm-based pricing models that increase fares when demand is high in order to bring up the supply of drivers on the road.

Following a social-media firestorm over its surge fares on Halloween, Uber went the extra mile ahead of NYE to warn its customers that the biggest party night of the year would undoubtedly trigger a hike in fares. Of course, that didn't stop some riders from once again storming Twitter with their receipts and their outrage on the morning after.

Other companies have noticed the chatter, too. Flywheel, also an app-based transportation service, offered NYE rides in select cities for a $10 flat fee.