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UX problems aside, the surge pricing idea is creates fascinating window into the true perceived value of the service. To give an example, Uber would normally be
by dotBen 15y ago
UX problems aside, the surge pricing idea is creates fascinating window into the true perceived value of the service. To give an example, Uber would normally be ~$35 from the party I was at last night in SF's Mission to my home.
With a 6.25x multiplier in place it would have been just under $220. There is just NO WAY I'd spend that to go 2 miles to get home. But obviously some people were prepared to, and that must be golden information for Uber in terms of future pricing planning.
I also wonder whether that could be used in other pricing scenarios, such as SaaS, where if some level of (artificial/real) scarcity could be put in place you could see how much people are really prepared to pay for your service.