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No amount of the surge pricing should go to Uber. They're already earning more due to the increased number of rides. It's almost akin to taking the tips.
by jonny_eh 3y ago
No amount of the surge pricing should go to Uber. They're already earning more due to the increased number of rides. It's almost akin to taking the tips.
- bawolff 3y agoI don't understand why people think this. Uber isn't a charity. Of course they are going to try to take advantage of demand shortages. If drivers want to take in the profit from things like this, they should form a co-op, not be contractors.
- jen20 3y agoThe original (stated) point of surge pricing was to encourage more drivers to start work because of higher rates.
- wordpad25 3y agoThey can buy Uber stock
- jonny_eh 3y agoIt says this on the Uber website: > In these cases of very high demand, prices may increase to help ensure that those who need a ride can get one. This system is called surge pricing, and it lets the Uber app continue to be a reliable choice. The fact that only a fraction of the fare increase goes to the driver is misleading at best. https://www.uber.com/us/en/drive/driver-app/how-surge-works/ https://www.uber.com/us/en/drive/driver-app/how-surge-works/
- bawolff 3y agoIt sounds like they are saying - we increase prices so that less people use the app so we can service all the people who do. It is only a misleading statement if you put words in uber's mouth beyond what they say. I don't see anything here suggesting they increase prices to increase supply instead of decreasing demand.
- jonny_eh 3y agoYour interpretation is far too generous to Uber. > prices may increase to help ensure that those who need a ride can get one Why are you using the app if you don't need a ride? I agree that it's purposely vague, which makes it intentionally confusing. Here's another link: https://www.uber.com/us/en/marketplace/pricing/surge-pricing https://www.uber.com/us/en/marketplace/pricing/surge-pricing > This encourages more drivers to serve the busy area over time and shifts rider demand, to maintain reliability and restore balance. > Surge pricing is a relief valve for the rideshare marketplace. Without it, when demand for rides exceeds the number of available drivers, riders would wait longer (or might not be able to get a ride at all). Drivers would have less incentive to accept requests in busy areas. Surge pricing helps restore balance to the network. By waiting a bit longer, riders can avoid the surge price.