When are surge charges applied and why?
The Guru Take
Surge Pricing
Surge pricing is applied when the supply cannot keep up with the demand. There are times (rush hour, after concerts or sporting events, during bad weather) when so many people are requesting rides that there are not enough Uber cars on the road to help transport them all. In these cases, when the demand is high, fares may increase to help ensure those who need a ride (and are willing to pay extra) can get one.
Once Uber enacts surge pricing, drivers who pick up passengers in that area will make more money due to the higher fares. This entices drivers to head to surge areas to pick up passengers. As more and more drivers head to a surge area, the supply will start to equal the demand and the surge pricing will start to drop again.
To learn more about surge pricing visit our Surge Pricing Made Simple guide.
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