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Showing posts from February, 2016

Uber: How you can fix the broken "surge pricing" model you've implemented.

It's pretty clear at this point that Uber's surge pricing model has been met with mixed reactions and in many cases outright derision by the customer base. The pricing model instituted in some large cities at the end of 2015 allows customers to pay more for the luxury of having an Uber driver arrive in a timely fashion when demand is high.

At first this sounds like a very  good idea, Uber simply keys up the price of the fair percentage doled out to the driver until drivers swarm an area where demand is high, this gets the drivers a larger payout per fair but also ensures that the customers in high demand areas also get picked up faster...so what's the problem?

The problem is that surge pricing can't be accurately given a price estimate like non surge pricing calculations are given and often people being picked up in high demand areas are simply focused on one factor, getting picked up ....often under inebriated circumstances, when they sober up after the revelry is done…