Uber Surge Pricing
On many occasions, there are a lot of riders that are pinging for rides and there are not many drivers available to help take them all. Such occasions or events can be football games, bad weather, rush hour, concerts. As a result, a large numbers of people to want to ride Uber all at the same time.
In other words, the demand increases and there’s not enough supply, that’s basic economic. Since Uber’s goal is to always be a reliable option, especially in situations when people need a ride most. They come up with surge pricing to encourage many drivers to hit the road.
In these cases of very high demand, Uber chooses to start raising prices little by little to encourage more uber drivers to get on the road so there are enough drivers available to meet the requests. This system is called Uber Surge pricing. And it lets Uber continue to be a reliable choice of transportation.
Whenever Uber raise rates due to Uber Surge pricing, riders will receive a notification before they request their rides; in fact, they won’t be able to place their request unless they accept and agree to the new uber surge pricing.
Some riders will choose to wait a few minutes to see if the rates go back down to normal, so they don’t request their ride at that moment. As more riders start waiting to request, the number of available drivers on the road increases until it once again closely matches the number of trip requests. At that point, Uber is able to lower rates again to bring them back to normal.
How Surge Prices Are Calculated
When prices are surging, you’ll see a multiplier to the standard rates. For example, you might see surge at 1.8x or 2.5x. This is how much your base fare will be multiplied by, so a fare that is usually $10 would be $20 when it’s at 2.0x Surge. Uber’s fee percentage does not change during Uber Surge pricing.
Because Uber update the rates based on the demand at a certain time, Surge can change quickly. Uber Surge pricing is also specific to different areas in a city, so some neighborhoods may have surge pricing at the same time as to other neighborhoods have none at all.
Of course, it’s always a good idea to head to areas that you know will be busy as a driver, since you can increase your chances of getting higher fares during Uber Surge pricing and reduced time between trips. Keep in mind that it is not good practice to cancel on riders to try to get higher fares. Ultimately, Uber Surge pricing helps make sure people can count on Uber for a reliable ride.
Uber Surge Pricing – Is it Necessary?
Recently, there has been a lot of ongoing complaint and debate concerning Uber surge price and whether it’s a necessity or not. As, given the fact that the New Year’s Eve was one of the busiest nights throughout the year, Uber implemented surge price, meaning a higher fares.
An increase of price was, certainly expected, given the high demand, but, still, Uber users didn’t expect the services to be as pricey as they were. Consequently, a lot of people have reported having to pay up to ten times the normal amount of money they would normally have paid on a regular night. And the following question emerges – is Uber surge price necessary?
Even though Uber officially declared that about 60 percent of the New Year’s Eve rides weren’t charged with Uber surge price, reports indicate that, in some cities, the rates were up to 10 times higher. People were; indeed, mad at the ridiculously higher asking prices.
Nonetheless, Uber spokesman Caspar Nixon affirmed that this feature is specially created to encourage drivers to be available during peak nights throughout the year when demand is higher than normal. As everybody knows how challenging can be to get a ride on New Year’s Eve or Halloween, Uber seems to have sorted this out, by introducing surge price.
Plus, whether you choose to use Uber or not, is entirely a matter of personal choice. Uber’s surge pricing is explained on their website in detail, so it’s not as if it tricks people into agreeing to something they aren’t aware of.
Riders are asked to agree to the higher fares, and only after accepting will the car arrive. Uber’s main target, as every fast-developing business is, certainly to provide service even during the busiest nights of the year, and through surge price, it has managed to do that.
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