11 ms·

Uber Surge Price? Research Says Walk a Few Blocks, Wait a Few Minutes

68 points by ckurose 11y ago

__Joker 11y ago
How does customer need to counteract if he needs a time sensitive ride? Lets say, I need to go to Airport at time x. Neither I can book earlier to guarantee a ride nor can I wait out the surge.
- rconti 11y ago
  Well, typically 5 minutes won't hurt your airport trip. I've only paid surge pricing a couple of times in dozens of Uber trips, and both times it was post-bar hours in Redondo Beach, and the 2x surge price was still far cheaper than here in SF.
- cobalt 11y ago
  one unbecomes such a customer and perhaps utilizes a service of a lesser price, or sucks it up and pays the extra fee
- monort 11y ago
  Use a transfer service, which offers pre-orders. Uber is losing all my airport rides because they don't have it.
  - TeMPOraL 11y ago
    They probably don't want it anyway. It's more profitable for both Uber and the drivers to not take such rides; in the time to and back from airport they could take several within the city.
    - elcct 11y ago
      Also it is too risky - for example if they won't make it in time
    - monort 11y ago
      If it's profitable for a generic limousine transfer services, why it's not profitable for Uber? Blacklane seems to be profitable too.
      - ssharp 11y ago
        I need to take a transfer from Fort Lauderdale airport to Miami in a few weeks and was looking at pricing. Uber was definitely the cheapest, assuming no surge pricing. A scheduled private car is going to be close to $30 more than an Uber.
      - hkmurakami 11y ago
        I'd imagine something related to price segregation and bundle pricing.
      - skimpycompiler 11y ago
        Logistics of planning all those orders and rides is expensive.
        Retric 11y ago
        Sounds like a job for software.
        skimpycompiler 11y ago
        It'd be interesting to see how someone handles vehicle routing problem on a large scale, quickly and optimally.
        TeMPOraL 11y ago
        Isn't that a solved problem since like the early 70s? Even computing power is not a limiting factor now, only those pesky humans bickering about "central planning" and "democratization".
        11y ago
- peteretep 11y ago
  One uses the many minicab or prebooked services instead? Uber exists for the use case of needing a car right now. Needing a car later was a pretty well served use case in most of the world
deathtrader666 11y ago
Nope. This doesn't work. I've walked more than a couple of miles, and waited more than an hour.. the surge stays between 4X to 5X.
mml 11y ago
In my experience, surge pricing on a nice day doesn't last long. When the weather is nuts, you're gonna pay. Too bad I'm not a researcher.
mw67 11y ago
Or use this app: https://itunes.apple.com/us/app/surgeprotector/id925613132?mt=8 https://itunes.apple.com/us/app/surgeprotector/id925613132?m...
- swypych 11y ago
  Cool concept, but it keeps crashing (iPhone 6, iOS8.4)
msde 11y ago
Or use a new company like https://fasten.com/ https://fasten.com/ who doesnt do surge pricing.
- 3princip 11y ago
  >No surge pricing ... however if you're late for work ... you can always Boost your ride. The website explains to boost ones ride is to apply a multiplier to the price. One might call this a surge.
  - msde 11y ago
    That's just good economics. Fasten clearly understands economics and incentives far better than Uber does. Uber is the classic case of aggressive government style intervention in a market causing it to collapse - no riders or drivers in high demand areas during surge pricing. This is a total failure of market policy because no price discrimination is allowed. Fasten is akin to setting minimum wage. They set a low base price but if you want to get somewhere faster or get preference during a busy period then YOU can raise your price by what it's worth to you. This is a big stumbling block for Uber to which Fasten has a rather decent solution.
    - te_chris 11y ago
      That sounds worse than surge pricing as a customer.
    - forgetsusername 11y ago
      >That's just good economics. Fasten clearly understands economics and incentives far better than Uber does. It sounds like an auction. It's a clever system, but I don't think it represents a more fundamental understanding of economics than Uber's system, which is to raise prices to induce supply to match demand.
      - dragonwriter 11y ago
        > It sounds like an auction. It's a clever system, but I don't think it represents a more fundamental understanding of economics than Uber's system, which is to raise prices to induce supply to match demand. Uber's system is a central planner trying to simulate the results of a two-sided auction by centrally setting prices to try to achieve a desired result given supply and demand signals. Fasten's system strips out the simulation and just is an auction, which allows supply and demand to align without requiring central planning. I think its pretty fair to describe the latter as evidencing a better understanding of economics.
ryanx435 11y ago
just like I refuse to pay covers at bars, I refuse to pay surge pricing. Uber is my go to app, but if they are doing surge pricing than I switch to ihail (an Uber clone run by a taxi company). if they ate busy, than I use lyft as a last resort. I hate using lyft because they don't offer a fare estimate. using this process I have saved myself 100s of dollars in ride fares.
- saalweachter 11y ago
  Maybe someone should write an app that does this automatically.
- eastbayjake 11y ago
  > I hate using lyft because they don't offer a fare estimate. Where are you using these apps? In the Bay Area, I like Lyft better than Uber because Lyft gives you a specific fare but Uber gives you a range. (FWIW, there are many other reasons I like Lyft better than Uber.)
mezeek 11y ago
The simplest way is to move the pickup point ever so slightly until you reach a spot without surge pricing, then simply walk there as it arrives.
turnip1979 11y ago
Last time I encountered a 4x surge pricing, I downloaded Lyft ... the minute I ordered it, surge pricing ended (really annoyed me and I went with Lyft anyways). If it wasn't for surge pricing, I'd be cheerleading for Uber. Surge pricing adds a level of uncertainty ... and 4x on a 50 dollar ride is insane if it ends in a few minutes.
- viscanti 11y ago
  Isn't that the whole point of surge pricing? It's attempting to balance supply and demand. On the supply side it's trying to get more drivers where there's more demand. On the demand side, it's trying to see if you really need a ride, or if you can walk a couple blocks or if you can wait a few minutes.
  - toomuchtodo 11y ago
    If surge pricing is enabled in order to temper demand until supply can catch up, it promotes supply from places Uber may not like (Lyft). No app yet to query Lyft and Uber, see who is cheaper at the moment, and launch the cheaper provider?
    - jimkri 11y ago
      Here is a website that does the comparison between the 2, but you have to manually enter the surge percentage, http://www.whatsthefare.com/ http://www.whatsthefare.com/ I think someone mentioned it at least a year ago in a discussion about Uber vs. Lyft.
  - deleted 11y ago
    [deleted]
- chipgap98 11y ago
  I actually prefer Lyft, but I use both simply because of surge pricing. Being in Boston though, between Lyft and Uber and their pooling options, I feel like I rarely pay for surge when I'm going somewhere alone. Also, sometime I Uber or Lyft of the busy area (i.e. outside of a concert or sporting event) and then call another one that won't have surge pricing.
jdlyga 11y ago
I always just try the request again a minute later and surge pricing is usually gone.

68 points by ckurose 11y ago

How does customer need to counteract if he needs a time sensitive ride? Lets say, I need to go to Airport at time x. Neither I can book earlier to guarantee a ride nor can I wait out the surge.

rconti 11y ago
Well, typically 5 minutes won't hurt your airport trip. I've only paid surge pricing a couple of times in dozens of Uber trips, and both times it was post-bar hours in Redondo Beach, and the 2x surge price was still far cheaper than here in SF.
cobalt 11y ago
one unbecomes such a customer and perhaps utilizes a service of a lesser price, or sucks it up and pays the extra fee
monort 11y ago
Use a transfer service, which offers pre-orders. Uber is losing all my airport rides because they don't have it.
- TeMPOraL 11y ago
  They probably don't want it anyway. It's more profitable for both Uber and the drivers to not take such rides; in the time to and back from airport they could take several within the city.
  - elcct 11y ago
    Also it is too risky - for example if they won't make it in time
  - monort 11y ago
    If it's profitable for a generic limousine transfer services, why it's not profitable for Uber? Blacklane seems to be profitable too.
    - ssharp 11y ago
      I need to take a transfer from Fort Lauderdale airport to Miami in a few weeks and was looking at pricing. Uber was definitely the cheapest, assuming no surge pricing. A scheduled private car is going to be close to $30 more than an Uber.
    - hkmurakami 11y ago
      I'd imagine something related to price segregation and bundle pricing.
    - skimpycompiler 11y ago
      Logistics of planning all those orders and rides is expensive.
      - Retric 11y ago
        Sounds like a job for software.
        skimpycompiler 11y ago
        It'd be interesting to see how someone handles vehicle routing problem on a large scale, quickly and optimally.
        TeMPOraL 11y ago
        Isn't that a solved problem since like the early 70s? Even computing power is not a limiting factor now, only those pesky humans bickering about "central planning" and "democratization".
        11y ago
peteretep 11y ago
One uses the many minicab or prebooked services instead? Uber exists for the use case of needing a car right now. Needing a car later was a pretty well served use case in most of the world

deathtrader666 11y ago

Nope. This doesn't work. I've walked more than a couple of miles, and waited more than an hour.. the surge stays between 4X to 5X.

mml 11y ago

In my experience, surge pricing on a nice day doesn't last long. When the weather is nuts, you're gonna pay. Too bad I'm not a researcher.

mw67 11y ago

Or use this app: https://itunes.apple.com/us/app/surgeprotector/id925613132?mt=8 https://itunes.apple.com/us/app/surgeprotector/id925613132?m...

swypych 11y ago
Cool concept, but it keeps crashing (iPhone 6, iOS8.4)

msde 11y ago

Or use a new company like https://fasten.com/ https://fasten.com/ who doesnt do surge pricing.

3princip 11y ago
>No surge pricing ... however if you're late for work ... you can always Boost your ride. The website explains to boost ones ride is to apply a multiplier to the price. One might call this a surge.
- msde 11y ago
  That's just good economics. Fasten clearly understands economics and incentives far better than Uber does. Uber is the classic case of aggressive government style intervention in a market causing it to collapse - no riders or drivers in high demand areas during surge pricing. This is a total failure of market policy because no price discrimination is allowed. Fasten is akin to setting minimum wage. They set a low base price but if you want to get somewhere faster or get preference during a busy period then YOU can raise your price by what it's worth to you. This is a big stumbling block for Uber to which Fasten has a rather decent solution.
  - te_chris 11y ago
    That sounds worse than surge pricing as a customer.
  - forgetsusername 11y ago
    >That's just good economics. Fasten clearly understands economics and incentives far better than Uber does. It sounds like an auction. It's a clever system, but I don't think it represents a more fundamental understanding of economics than Uber's system, which is to raise prices to induce supply to match demand.
    - dragonwriter 11y ago
      > It sounds like an auction. It's a clever system, but I don't think it represents a more fundamental understanding of economics than Uber's system, which is to raise prices to induce supply to match demand. Uber's system is a central planner trying to simulate the results of a two-sided auction by centrally setting prices to try to achieve a desired result given supply and demand signals. Fasten's system strips out the simulation and just is an auction, which allows supply and demand to align without requiring central planning. I think its pretty fair to describe the latter as evidencing a better understanding of economics.

ryanx435 11y ago

just like I refuse to pay covers at bars, I refuse to pay surge pricing. Uber is my go to app, but if they are doing surge pricing than I switch to ihail (an Uber clone run by a taxi company). if they ate busy, than I use lyft as a last resort. I hate using lyft because they don't offer a fare estimate. using this process I have saved myself 100s of dollars in ride fares.

saalweachter 11y ago
Maybe someone should write an app that does this automatically.
eastbayjake 11y ago
> I hate using lyft because they don't offer a fare estimate. Where are you using these apps? In the Bay Area, I like Lyft better than Uber because Lyft gives you a specific fare but Uber gives you a range. (FWIW, there are many other reasons I like Lyft better than Uber.)

mezeek 11y ago

The simplest way is to move the pickup point ever so slightly until you reach a spot without surge pricing, then simply walk there as it arrives.

turnip1979 11y ago

Last time I encountered a 4x surge pricing, I downloaded Lyft ... the minute I ordered it, surge pricing ended (really annoyed me and I went with Lyft anyways). If it wasn't for surge pricing, I'd be cheerleading for Uber. Surge pricing adds a level of uncertainty ... and 4x on a 50 dollar ride is insane if it ends in a few minutes.

viscanti 11y ago
Isn't that the whole point of surge pricing? It's attempting to balance supply and demand. On the supply side it's trying to get more drivers where there's more demand. On the demand side, it's trying to see if you really need a ride, or if you can walk a couple blocks or if you can wait a few minutes.
- toomuchtodo 11y ago
  If surge pricing is enabled in order to temper demand until supply can catch up, it promotes supply from places Uber may not like (Lyft). No app yet to query Lyft and Uber, see who is cheaper at the moment, and launch the cheaper provider?
  - jimkri 11y ago
    Here is a website that does the comparison between the 2, but you have to manually enter the surge percentage, http://www.whatsthefare.com/ http://www.whatsthefare.com/ I think someone mentioned it at least a year ago in a discussion about Uber vs. Lyft.
- deleted 11y ago
  [deleted]
chipgap98 11y ago
I actually prefer Lyft, but I use both simply because of surge pricing. Being in Boston though, between Lyft and Uber and their pooling options, I feel like I rarely pay for surge when I'm going somewhere alone. Also, sometime I Uber or Lyft of the busy area (i.e. outside of a concert or sporting event) and then call another one that won't have surge pricing.

jdlyga 11y ago

I always just try the request again a minute later and surge pricing is usually gone.