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It 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
by jonny_eh 3y ago
It 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.