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How does Uber Apply Surge Pricing?

Here is all you need to know about the surge pricing of Uber


Uber surge pricing is an electronic method, in some instances similar to airline pricing. When numerous Uber ride requests are made within a short period of time in a given area in contrast to the number of Uber drivers currently on the road, the prices of all rides in that area are increased. Here is all you need to know about the Surge pricing of Uber.

The multiplicity degree is decided by the ratio between the number of demands made for a ride and the supply of drivers available at the moment when the surge goes into its effect. Uber pricing keeps on fluctuating and so the Uber rates may change at any time or place.

How does Uber Apply Surge Pricing?
Uber

How does the Surge pricing works?

Uber rates are increased to assure accuracy when a particular demand cannot be met by the available number of drivers on the road.

Its goal is to be as loyal as possible in linking you with a driver whenever you are in need of one. At a time of increasing demand, the number of drivers with whom we can connect you becomes limited, and as a result, prices increase to restore more and more drivers to become available.

Uber notifies the traveler about the current price before connecting him/her to the driver. One can see a notification screen in the Uber app whenever there is surge pricing.

DOES THIS SURGE PRICING ACTUALLY WORK?

There are a lot of debates about surging price online. Many statistics show how it never increases the number of available drivers.

To which Uber says: the drivers have to be online to see where the surges are applied. They aren’t sitting at home or checking the app in every five minutes, they are driving. They do not drive because there is a surge.

These surge pricing help drivers make more money. There might be a drop in a driver’s weekly income if there were no surges.

So in this sense Uber surge pricing does inspire more and more drivers to be on road. This surge pricing usually happens during the peak hours, however, it enables Uber to offer passengers minimum fare during non-peak hours.

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