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The entire purpose of surge pricing is to ensure that there is always a care when you want one. The purpose is not profit maximization, but ensuring there will
by ghshephard 12y ago
The entire purpose of surge pricing is to ensure that there is always a care when you want one. The purpose is not profit maximization, but ensuring there will never be a time that I go to Uber, request a vehicle, and not have one appear within a reasonable period of time.
If Surge pricing is working then there should be a large number of empty cars waiting for rides. Those cars are incentivized to show up by getting paid more than they normally would for a ride of the same distance.