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I 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

I 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 ago
Its also in uber's best interests to charge more money if possible.
- twoodfin 11y ago
  Well yeah, by "everyone" I meant to include both Uber and the drivers, along with their customers.
zapt02 11y ago
This depends on country. In Sweden for example, 1.3x UberX rates are equal to a standard taxi.
fullshark 11y ago
Surge 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.
- morgante 11y ago
  Because tipping taxi drivers is expected and tipping Uber drivers is not. I've taken both NYC taxis and Uber many times and always tip in a taxi and never in Uber. > Does Uber have some kind of policy on tipping? Yes. Uber does not encourage tipping and cash payments aren't allowed.

throwaway2048 11y ago

Its also in uber's best interests to charge more money if possible.

twoodfin 11y ago
Well yeah, by "everyone" I meant to include both Uber and the drivers, along with their customers.

zapt02 11y ago

This depends on country. In Sweden for example, 1.3x UberX rates are equal to a standard taxi.

fullshark 11y ago

Surge 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.

morgante 11y ago
Because tipping taxi drivers is expected and tipping Uber drivers is not. I've taken both NYC taxis and Uber many times and always tip in a taxi and never in Uber. > Does Uber have some kind of policy on tipping? Yes. Uber does not encourage tipping and cash payments aren't allowed.