# Fact of Surge Pricing



## Wyatt (Apr 17, 2014)

It is by far the biggest weakness in Uber's biz plan.

We are punishing our customers for using our service!

Most people are waiting for the surge to end (which pisses them off) or even worse, THEY ARE FINDING OTHER METHODS OF TRANSPORTATION!!!

Why are we giving our loyal customers a reason to shop for a cheaper ride?

If we need more workers in a certain area at a certain time in order to make more money then the entity who stands to make the most money by meeting the demand should be responsible for making it happen. 

In other words:
DROP THE COMMISSION RATE IN SURGE AREAS


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## myuber (Apr 18, 2014)

I understand your view point.. read on uber's blog why they charge surge pricing. At 2x with uberx your paying cab pricing.. look at airlines and hotels, rental car places do it.. do hear ppl *****ing about paying 800 or 1,000 for airline ticket the weekend before Christmas. . But same the ticket is 350 in Middle of april.. .. here phoenix when spring training was here.. A subcompact rental was $120 a day.. my point is when surge is turned on ppl have a choice.. wait for drivers to get on or pay for surge pricing... p.s I hope you don't buy popcorn from movie theaters.. surge pricing


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## Larry B (Apr 9, 2014)

No need to yell Mr Wyatt, we are all friends here. What do you mean "drop the commission rate in surge areas?" Take less then 20% when the fare is a surge price? I think out of the complaints of Uber drivers surge pricing is kind of a diamond in the rough rocky patch of issues. I'm not sure there are much cheaper rides to be had. I don't think the amount of users is really so much of an issue, at least not yet. Sometimes the methodology of the surge does seem a bit peculiar. And I would agree sometimes the exponentials seem a little uncalled for. But you won't find too many drivers siding with you on charging customers less.


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## dp3 (Apr 11, 2014)

myuber said:


> I understand your view point.. read on uber's blog why they charge surge pricing. At 2x with uberx your paying cab pricing.. look at airlines and hotels, rental car places do it.. do hear ppl *****ing about paying 800 or 1,000 for airline ticket the weekend before Christmas. . But same the ticket is 350 in Middle of april.. .. here phoenix when spring training was here.. A subcompact rental was $120 a day.. my point is when surge is turned on ppl have a choice.. wait for drivers to get on or pay for surge pricing... p.s I hope you don't buy popcorn from movie theaters.. surge pricing


It's not comparable to airline fares. You know a plane ticket is going to be expensive at Christmas time, and that won't change. If you're an Uber rider and you see a surge, you just sit there and wait it out (unless you're an idiot) or, as Wyatt mentioned, you find another method of transportation. Surge is a joke. When I'm in a surge area, I don't expect to ever get a ride. As soon as that red goes away, though, I know I'll be pinged in the next minute. Like clockwork.

The movie popcorn comparison is dumb, too.


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## jakeV (Apr 10, 2014)

It is hard to get surge pricing. There are times though when it's going off, especially holidays. There are times when if the user waits they are just going to pay more. Interestingly though even those times I will see quite a few available cars on the passenger app.


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## Sydney Uber (Apr 15, 2014)

I like Surge pricing, its like fishing a boring stretch and the tide turns - knowing if you do catch something it will be a good one. 

I also think it puts us in line with other hospitality service industries that jack up their prices when demand is high. Hotels, Airlines, restaurants do it, Taxis here in Sydney have a 20% surcharge between 10pm and 6am to keep them out there. 

Riders do hold back, but others don't.


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## Larry B (Apr 9, 2014)

And that is the point at the heart of the matter. Like others have said, its who wants to pay more to not have to wait.


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## Sydney Uber (Apr 15, 2014)

Larry B said:


> And that is the point at the heart of the matter. Like others have said, its who wants to pay more to not have to wait.


UBER has a good foothold in the East here in Sydney. There are 4-5 Suburbs that don't have a house under 4million with the waterfront places going for 20m +. That's where I try to be when surge happens - these folk don't stuff around and generally accept any higher charge.


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## Wyatt (Apr 17, 2014)

I agree you can get away with bumping up the rates after you have cornered the market.


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## Wyatt (Apr 17, 2014)

Larry B said:


> No need to yell Mr Wyatt, we are all friends here. What do you mean "drop the commission rate in surge areas?" Take less then 20% when the fare is a surge price? I think out of the complaints of Uber drivers surge pricing is kind of a diamond in the rough rocky patch of issues. I'm not sure there are much cheaper rides to be had. I don't think the amount of users is really so much of an issue, at least not yet. Sometimes the methodology of the surge does seem a bit peculiar. And I would agree sometimes the exponentials seem a little uncalled for. But you won't find too many drivers siding with you on charging customers less.


Never angry brother. Just desperate to make my point.
Im saying, it is the peculiar methodology and exponentials that these smart, young, web savvy customers won't stand for.

How about a flat rate increase/commission drop during surge times in surge zones?


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