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I've used Lyft a few times recently. I'm a little suspicious Uber is using surge fair tactics on users that have agreed to the pricing in the past when there i
by nemo44x 11y ago
I've used Lyft a few times recently. I'm a little suspicious Uber is using surge fair tactics on users that have agreed to the pricing in the past when there is in fact no surge occurring.
When traveling for work I often use Uber and recently there was consistent surge pricing. The first day it made sense since it was raining. But then the next few times I used it there was surge pricing - not much, like 1.1x or 1.3x. I agreed because it wasn't too much more and I needed to get to my meetings and it can be expensed. I mentioned to my Uber driver there was a surge and he said it didn't come up as a surge for him. The next trip later that day the surge was 2.2x
But then when I got back home I noticed every time I've brought the Uber app up there is a "surge". Even during fine weather and non-traditional surge times. I look outside and there are taxis available (NYC) and I opened Lyft and there were plenty of options without any surge.
It was probably bad luck (I don't really think they'd get that greedy that quickly) but it made me try Lyft and I had the exact same experience as Uber.
I suppose this is the market at work.
- late2part 11y agohttps://www.youtube.com/watch?v=Lin-a2lTelg https://www.youtube.com/watch?v=Lin-a2lTelg
- jonknee 11y agoIt's highly dependent on the market. I rarely see surge where I live (Seattle), but I was in a different city a few weeks ago and only saw surge pricing the whole time I was there.
- jellicle 11y agoRight. Uber understands you don't have alternatives in that city, you don't know the city, don't have your car, and you need transit. You're in tourist-mode, so you're going to get tourist pricing. Otherwise Uber is leaving money on the table.
- staticfish 11y agoanother data point: I live in Seattle, too, and see surge all the time.
- twoodfin 11y agoI strongly suspect that Uber has (or will, depending on a particular market's maturity) smooth the curve on surge pricing. I think most customers are initially averse to ever paying more than 1x, but once you've gotten used to paying 1.1x or 1.2x, you realize it's still typically much cheaper than a taxi. It's ultimately in everyone's interests for prices to adjust quickly and smoothly to demand.
- throwaway2048 11y agoIts also in uber's best interests to charge more money if possible.
- twoodfin 11y agoWell yeah, by "everyone" I meant to include both Uber and the drivers, along with their customers.
- zapt02 11y agoThis depends on country. In Sweden for example, 1.3x UberX rates are equal to a standard taxi.
- fullshark 11y agoSurge pricing isn't just about getting a larger cut for Uber, it's about increasing the pool of drivers on the road to serve rides and eliminate shortages. I'm guessing the smoothing you describe comes from the fact that the pool of uber drivers has grown dramatically of late.
- e12e 11y ago> once you've gotten used to paying 1.1x or 1.2x, you realize it's still typically much cheaper than a taxi. Anyone know if these numbers from 2014 still holds up? http://www.businessinsider.com/uber-vs-taxi-pricing-by-city-2014-10 http://www.businessinsider.com/uber-vs-taxi-pricing-by-city-... I have no idea why they'd assume that people will tip taxies 20% and not tip the Uber drivers (who presumably make less?) -- it certainly seems like an odd way to compare prices ("a is cheaper than b when you choose to give b more money!"). Does Uber have some kind of policy on tipping? And how would that even work, assuming you pay cash? I do wonder how much of that lower price on Uber is due to tax evasion and dodging licenses and registrations etc.
- tedmiston 11y agoIn a small city (Cincinnati), Uber only really surges on Friday and Saturday nights, mostly around the downtown neighborhoods, and then for major events with a few thousand+ people in one place.
- dmix 11y agoProbably because NYC has strict limits to the number of licenced taxi's on the road creating a supper/demand imbalance, largely due to the medallion system, which is not found in most other medium sized cities resulting in a much greater supply.
- zethraeus 11y agoTo quell your suspicion you could download the driver app and take a look at the surge map. The surge values aren't a secret.
- dikdik 11y agoThe first time I used Lyft was due to a "free ride" coupon given to me by my Uber driver. There is a massive overlap of drivers. I try Lyft first as surge pricing seems scarcer on that platform, but I always check Uber if Lyft has surge pricing or my wait time is too long.