> If you can raise your price without reducing rides (1), your prices are too low to begin with. Yes (ignoring the possibility of wanting to discourage long-te

> If you can raise your price without reducing rides (1), your prices are too low to begin with. Yes (ignoring the possibility of wanting to discourage long-term competition by keeping margins low), from a profit-maximization perspective, but not necessarily a quantity-of-rides maximization as uber claims. > only incur the wrath of users by raising the price when it rains? That's really poor marketing. Some would argue that surge pricing is already poor marketing, given the negative reaction people intuitively have to it > As long as the relationship is positive, surge pricing works. No, depends on the elasticity of demand. If demand is unit elastic then an increase in price will result in a equivalent decrease in rides. In order for surge pricing to increase the quantity of rides supplied supply has to be more elastic than demand.