# The Other Critical Reason for Surge Pricing



## ChinatownJake (Jan 3, 2016)

Yes, surge pricing - especially on a big day like Valentine's or NYE - is a key enticement for drivers. But equally important to the Uber equation is that it is designed to make riders wait-cancel and thus, quickly bring demand back down so that it is in line with driver supply.

When I speak with passengers about surge pricing, their main complaint is not the idea of it per se - people totally understand principle. Rather, it's the volatility of it that they complain to me about; how it wildly goes up and down, sometimes within nanoseconds. Passengers wonder how scientifically Uber truly calculates the surge.

I've often wondered if (again, outside of big special event days of the year) Uber and drivers would be better off with plateaus. E.g., riders when medium busy it will be 2.0, when very busy 3.0 and when super busy, max 4.0. But even that approach I suppose would prevent the economic supply-demand rule from properly kicking in when needed.

P.S. I've heard that when UberX first launched in L.A., they tried capping surge pricing at 2.0 but quickly abandoned because system broke down (people waited too long for rides, etc.). Does anyone know if this is true?


----------



## Eric K (Dec 28, 2014)

Surge pricing does bring drivers out. As an example, how many of us would have worked NYE if we knew beforehand there would have been no surges?


----------



## bobby747 (Dec 29, 2015)

zero


----------



## ChinatownJake (Jan 3, 2016)

Eric K said:


> Surge pricing does bring drivers out. As an example, how many of us would have worked NYE if we knew beforehand there would have been no surges?


Of course, for big nights like NYE, Valentine's, Halloween, pricing is in line more with a guaranteed living wage and it's a key motivator to bring out gigantic fleet of drivers. But still, surge is designed also to make riders cancel or wait.

A lot of drivers I've talked to otherwise - on normal days/weeks - plan to drive when they drive. Fridays/Saturdays the lynchpin; the rest whenever schedule fits. Generally speaking, I ignore surge pricing on that level - it floats in and out, as I drive when planned.


----------



## nickd8775 (Jul 12, 2015)

It helps drivers get out when the weather is bad


----------



## ATX 22 (Jun 17, 2015)

nickd8775 said:


> It helps drivers get out when the weather is bad


Helps?
Entices might be a better word. It's usually a bait and switch, too. I see red when I sit in a 2.5x surge and don't get pinged until surge ends.


----------



## MikesUber (Oct 23, 2015)

ATX 22 said:


> Helps?
> Entices might be a better word. It's usually a bait and switch, too. I see red when I sit in a 2.5x surge and don't get pinged until surge ends.


Because riders know how to work the system as well, initially they need rides but see the 2.5x surge and just wait. Once it's gone, immediate request.



Eric K said:


> no surges?


 Nothing in Akron? Over here in Pittsburgh we hit 7-8x at 2AM


----------



## Amy13 (Mar 19, 2018)

ChinatownJake said:


> Of course, for big nights like NYE, Valentine's, Halloween, pricing is in line more with a guaranteed living wage and it's a key motivator to bring out gigantic fleet of drivers. But still, surge is designed also to make riders cancel or wait.
> 
> A lot of drivers I've talked to otherwise - on normal days/weeks - plan to drive when they drive. Fridays/Saturdays the lynchpin; the rest whenever schedule fits. Generally speaking, I ignore surge pricing on that level - it floats in and out, as I drive when planned.


I only drive when it's a promo or surge. I drive early morning in Philly.


----------



## Rakos (Sep 2, 2014)

ATX 22 said:


> Helps?
> Entices might be a better word. It's usually a bait and switch, too. I see red when I sit in a 2.5x surge and don't get pinged until surge ends.


DON'T TAKE THE NON SURGE PING...!

then sit back and feel the surge...

It's there...just don't be so anxious...8>)

Rakos


----------



## Amy13 (Mar 19, 2018)

I had a ride to the airport this morning with 2.7x surge. The rider told me that his company is paying for ride or he would of waited for he paid 73.00 for ride. I only recieved 44.00. Uber made the regular base fare cheaper than normal so they could pay me the surge and take almost 50percent of the money. I live right where I picked up the rider when I put in for airport ride as a rider without any 
surge it's almost 38.00, they only charged my rider 15.00 for base fare. They did this to me all morning. Took 40 to 50 percent of money. Rider paid 18.00, I only made 9. All my rides surging. This is wrong. I wish I could let my rider know that I didn't make a lot on the airport ride for he mentioned how much I am making. BS


----------



## Rakos (Sep 2, 2014)

Amy13 said:


> I had a ride to the airport this morning with 2.7x surge. The rider told me that his company is paying for ride or he would of waited for he paid 73.00 for ride. I only recieved 44.00. Uber made the regular base fare cheaper than normal so they co u ld pay me the surge and take almost 50percent of the money. I live right where I piced the rider up, when I put in for airport ride as a rider without ant surge it's almost 38.00, they only charged my rider 15.00 for base fare. They did this to me all morning. Took 40 to 50 percent of money. Rider paid 18.00, I only made 9. All my rides surging. This is wrong. I wish I could let my rider know that I didn't make a lot on the airport ride for he mentioned how much I am naking. BS


ALWAYS...I repeat...ALWAYS...

If they mention it...tell them...

We need to pop this insane bubble...

That they think we are making so much...

Reeducation... that's it...8>)

Rakos


----------



## ATX 22 (Jun 17, 2015)

Rakos said:


> DON'T TAKE THE NON SURGE PING...!
> 
> then sit back and feel the surge...
> 
> ...


You responded to a 2 year old post.
I haven't driven for uber or lyft since February of 2016, when they dropped rates below $1 per mile.


----------



## Rakos (Sep 2, 2014)

ATX 22 said:


> You responded to a 2 year old post.
> I haven't driven for uber or lyft since February of 2016, when they dropped rates below $1 per mile.


That's because Amy13 resurrected...

An old thread...8>)

Rakos


----------

