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It's unlikely to affect surge pricing. You can think of surge as a tool to move drivers to where the riders are. Even if you knew there would be heavy demand, y
by bastawhiz 9y ago
It's unlikely to affect surge pricing. You can think of surge as a tool to move drivers to where the riders are. Even if you knew there would be heavy demand, you need to incentivize drivers to actually go there. Why would I, as a driver, go 20 minutes out of my way to be in Katy Perry concert traffic when I can keep picking up passengers at a reasonable clip on the other side of town?
Surge is only really solved once autonomous vehicles can be preemptively positioned near demand.
- theCricketer 9y agoThe author might be suggesting that you could have surge priced compensation for the drivers to incentivize them to move to the demand but also amortize that cost for the consumer.
- bastawhiz 9y agoThat's an interesting problem because (if I'm understanding you correctly) forecasting would need to be done at an individual level. A consumer getting rides primarily during off-hours should (imo rightly) pay less than a rider booking rides primarily from busy locations. Amortizing that cost fairly while also making a safe profit is a tricky balance to strike, I'd think.