# Understanding why Surge is good



## JMBF831 (Aug 13, 2015)

Long read, but totally worth it. I think both drivers and customers need to realize why surge pricing is a good thing. Surge actually is a really good idea for more reasons than just basic "supply and demand." Surge is more than the ideology of " I normally sell apples for $0.50 a piece, but now that I only have two apples left and 10 people want these two Apples I will sell it for more because I can." It goes beyond that.

Surge pricing heavily promotes providing the best quality service to those that want or need it most.

Scenario: Imagine surge pricing is in effect and there are three customers wanting to request an Uber, but there are only two drivers available at that time.

Two of the aforementioned customers really want to go home now, and don't mind paying a premium. The third customer is deciding whether or not it is worth it to just walk and wouldnt mind if he/she had to wait 20 minutes. The third customer doesn't "need" to leave now. Problem solved. Surge pricing keeps all customers happy because the two that really wanted to go home will get there Uber because they will still request them. Sometimes when surge pricing is in effect I call it the game of "Who wants to go home?"

The third customer that doesn't mind waiting 20 more minutes will just wait until surge pricing goes back down. Surge pricing also slows down the total number of requests, thus making it appear that there is more coverage than there really is. Customers don't like to see "no UberX available." Surge pricing cuts down on the chances of all cars being "booked." Which obviously is good for customers because again, they don't want to log on and think that Uber isn't a reliable service.

Can you imagine how horrible the service would've been on Halloween if there was no surge pricing? Just think about how busy we were WITH surge pricing! Now imagine how many more people would have requested an Uber. In this "no surge" scenario how many more people would have seen the "No UberX available,"which doesn't look good for the company or the drivers. Without surge, people would be waiting for forever, and then they would think the service isn't reliable. There would be so many MORE people queued up waiting for a ride. And then when it took 45 minutes for an Uber to finally arrive the customer would probably never use the service again...

As for an increase in the quality of service, we as drivers know that we will provide better quality service on a surge. Just imagine if all pricing was doubled from the get go (2.0x)! We would all be stocking up on water and candy and doing whatever else the pax wanted. Drive-through? No problem. Need to have multiple stops? You got it. Want to go into the grocery store? I will sit right here with a smile on my face.

Surge pricing is great because it takes care of our best customers that don't mind paying a premium and truly appreciate the service. This way, we are able to cater to the ones that need our service most.


----------



## ATX 22 (Jun 17, 2015)

Surge pricing is bogus usury on Uber's part. It is the proverbial carrot on a stick, and drivers are the mules. Pax who are stupid enough to agree to paying for anything over a 1.5x surge deserve their fate.


----------



## JMBF831 (Aug 13, 2015)

ATX 22 said:


> Surge pricing is bogus usury on Uber's part. It is the proverbial carrot on a stick, and drivers are the mules. Pax who are stupid enough to agree to paying for anything over a 1.5x surge deserve their fate.


It definitely has a carrot on a stick factor for the drivers, but how many of us were going to be driving a Halloween night if we knew surge pricing did not exist?

1.5x is not a major jump unless you are traveling for an hour or so. I don't think you realize that Uber is very much an on demand service and if everyone is requesting service others have to pay a premium to keep the system reliable.

And, you must have missed my entire write up for the other reasons why it is good lol


----------



## ballparkboys (Jan 30, 2015)

More than that, how many people would be out at 2AM with the drunks if it didnt surge? Thats what I tell my people. If it was 1.0 all the time, you'd never find anyone at 2AM...


----------



## nickd8775 (Jul 12, 2015)

I got a 3.2 surge today. The Passenger was still on a train and I had to wait 10 minutes. I gladly waited after confirming that the pax would not cancel. it was a $50 fare for someone who was late for work


----------



## William1964 (Jul 28, 2015)

Scenario: One of the riders is a group of four going 35 miles north and one of them isn't feeling well. 15 miles into the trip the girl in the front seat this girl you don't look too good and needs to find a bathroom.


----------



## ATX 22 (Jun 17, 2015)

If rates were at a nominal, fair amount, there would be plenty of drivers out at 2am.
I have been out at 2, during a surge and ended up with nothing or a non surge ping more often than not. 
Your assessment of the surge being a good thing is just bunk. Uber tells the pax how to avoid paying surge. The wait for the pax to miss surge pricing is about 2-5 minutes, hardly an inconvenience.


----------



## JMBF831 (Aug 13, 2015)

nickd8775 said:


> I got a 3.2 surge today. The Passenger was still on a train and I had to wait 10 minutes. I gladly waited after confirming that the pax would not cancel. it was a $50 fare for someone who was late for work


Precisely my point. Clearly this customer severely needed to rely on the service. And because they were willing to pay a premium that ensured that they got one of the few drivers that was still available.


----------



## ATX 22 (Jun 17, 2015)

JMBF831 said:


> Precisely my point. Clearly this customer severely needed to rely on the service. And because they were willing to pay a premium that ensured that they got one of the few drivers that was still available.


Pffft. Clearly this rider is a moron. There were and always are plenty of cars. There were at least 2 other drivers within range who got stiffed by Uber's surge and might still be waiting for a ping.


----------



## JMBF831 (Aug 13, 2015)

ATX 22 said:


> Pffft. Clearly this rider is a moron. There were and always are plenty of cars. There were at least 2 other drivers within range who got stiffed by Uber's surge and might still be waiting for a ping.


Did you even read my original post lol this should clear up why Surge pricing is good for everybody.


----------



## Uber Uber (Jun 27, 2015)

It's not even a question that surge is essential in so many ways.


----------



## SECOTIME (Sep 18, 2015)

Hardly ever surges in Orlando unless there is a huge event. Then it's just a huge hassle. I look at the map all the time and it hardly ever surges between 1-3am

It's always orange or maybe a 1.2-1.4 during rush hour

Halloween,no surge at all


----------



## Txchick (Nov 25, 2014)

ATX 22 said:


> Pffft. Clearly this rider is a moron. There were and always are plenty of cars. There were at least 2 other drivers within range who got stiffed by Uber's surge and might still be waiting for a ping.


Their are inconsistent surges in the Dallas market anymore. With .85 cents per mile for Uber X surge has to be at least 2.1 for it to be worth it. With the new heat surge map with area broken up into many parts it has gotten worse. Agree with your point.


----------



## Uber 1 (Oct 6, 2015)

ATX 22 said:


> Surge pricing is bogus usury on Uber's part. It is the proverbial carrot on a stick, and drivers are the mules. Pax who are stupid enough to agree to paying for anything over a 1.5x surge deserve their fate.


Actually in our area a 2.25 X surge only means a pax would be paying about the SAME as a cab....even then they'd still be getting a nicer car (on the average) to ride in.

Surge has to get pretty crazy to really hurt the pax in our area BUT it does help otherwise underpaid Uber drivers to get closer to making minimum wages after expenses ! (OK that may be a bit of an exaggeration BUT you get my point I guess ;-))

Andy


----------



## Wyatt (Apr 17, 2014)

Strongly disagree. Good post, but it gives your customers a reason to look for another way home. It is the sole reason for so many people having more than one ride share app. If you need drivers in a certain area at a certain time just cut your 20% take from the driver, don't hurt your loyal customer.


----------



## undertoad (Oct 10, 2015)

IMO, anyone who drives a non-surge trip on Uber is a moron or truly desperate and likely completely ignorant or in denial about how little money he or she is making. 

If it doesn't surge in your area, you probably aren't making any money, so why even put up with all the stress of driving entitled Mr. Pink cheapskates around? I make an exception to this only when a surge ride has taken me to a non-surge zone and I'm pretty sure the non-surge fare will take me back someplace I want to be.

Lyft is much better, in that the passengers are less likely to be Mr. Pink, and if you have any sense or cleverness, you can figure out how to make the 20 percent Power Driver bonuses every week.


----------



## Uber Uber (Jun 27, 2015)

You people who are focused on the customer are completely right but you have to find a balance that makes those who work for you compensated and satisfied as well.


----------



## undertoad (Oct 10, 2015)

The passenger is not your customer. Uber is your customer. The passenger is Uber's customer. Uber just passes off the responsibility of customer interaction on the drivers.


----------



## Skinny1 (Sep 24, 2015)

I was just downtown....saw a surge and decided to do a ride. It was minimum, but surge none the less. I am trying to stick to surges only....unless I am away from territory.

Toad....so do you just log off if no surge in between surges? Or mainly do late nights.


----------



## undertoad (Oct 10, 2015)

Yes. I log off. I am on Android, so I can watch for the surge while off-line. 

Meanwhile, I take all the Lyft rides I can get, as they are for me all at 1.3-plus, because I hit the 20 percent bonus each week. There really is no other way to make money at this gig. 

The list of my Uber rides at the end of the week all have lightning bolts next to them, except for if I am in need of a ride back in from the Eastside or the airport and happen to catch a passenger. DexNex taught me this, and it takes discipline, but it really works, and if we all did it, there would be much more frequent surges to go around.


----------



## Skinny1 (Sep 24, 2015)

nt


----------



## JMBF831 (Aug 13, 2015)

Wyatt said:


> Strongly disagree. Good post, but it gives your customers a reason to look for another way home. It is the sole reason for so many people having more than one ride share app. If you need drivers in a certain area at a certain time just cut your 20% take from the driver, don't hurt your loyal customer.


Umm...

If it gives them another way home then guess what? They didn't need the service. The people that need it are willing to pay the premium and will be accommodated. Those that can wait...Wait. Or, as you put it, find another way home. Not sure what part you don't understand?

Surge DOES cater to the loyal customers by ensuring they get their driver right away. Those (cheap people) not willing to pay a 1.5 on a $8 fare can wait.


----------



## Davetripd (Dec 14, 2015)

I know I'm new here but there seems to be a lot of really angry Uber drivers. Anyway, surge gives me the incentive to work certain hours I normally wouldn't. A higher base fare would be great but in lieu of that, surge is the way to go.


----------



## Wyatt (Apr 17, 2014)

I understand your point. If you want to find out who is willing to pay more during peak hours then it is the perfect tool. I'm saying it accelerates the growth of competition. We are both right, but I'm way sharper than you....jk. Good post J.


----------

