How does the Uber surge really work?

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How does the Uber surge really work?

Post by Rider1 » Mon Mar 05, 2018 8:51 pm

How does the surge really work?
The Number one complaint from riders is surge pricing. I am happy to pay up to 1.6x the normal rate as it is still cheaper than a taxi... but why does it get so high sometimes?
Uber is so much better than taxis for many reasons, but it becomes a real turn off when the surge gets to over 2.0x.
As a passenger, is it worth waiting it out to get a cheaper rate?
Many thanks

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Re: How does the Uber surge really work?

Post by Unicorn » Mon Mar 05, 2018 8:55 pm

Hi Rider1,
It's based on simple economics...Supply of Uber drivers vs Demand from Passengers.
Passengers booking an Uber will always be alerted to a surge price by the message in the Rider App: “fares are higher due to increased demand”. The app shows an estimated fare once you have entered your destination, but the surge ratio is only displayed once you select “Confirm Uber X Now”.
You can always wait it out but there will also be a chance it may actually surge even higher!

Here is an example screenshot I took a while ago on the Passenger App:

Screenshot_20180223-233343.png (81.59 KiB) Viewed 3295 times
Screenshot_20180223-233334.png (97.72 KiB) Viewed 3292 times
Peak hours usually surge during the weekdays, and Friday and Saturday nights are usually always busy.
Screenshot_20180223-233343.png (81.59 KiB) Viewed 3293 times
Screenshot_20180223-233334.png (97.72 KiB) Viewed 3294 times
Screenshot_20180223-233343.png (81.59 KiB) Viewed 3294 times

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Re: How does the Uber surge really work?

Post by Uber X Driver » Mon Mar 05, 2018 9:06 pm

Surge pricing explained from the Uber website:
What is surge?
During times of high demand for rides, fares may increase to make sure those who need a ride can get one. For riders, surge helps ensure that pickup is available quickly and reliably. For driver-partners, surge means higher fares and a steady stream of ride requests. When you're online, your app displays areas with high demand for rides in shades of red. The deeper the shade of red, the greater that area's demand.

Surge pricing for any trip is based on the rider's pickup location. While you may receive a ride request while your vehicle is in a surging area, your rider's pickup location may not be surging. When you receive a pickup request from a surging area, the trip request screen displays the surge multiplier.

Surge rates are charged as a multiplier of X.X. For example, a rider in a surging area may see and accept a surge multiplier of 1.3x or 2.1x. This surge multiplier applies to the base, time, and distance of the trip fare. Cancellation fees, tolls, and per-trip surcharges are not subject to surge pricing.

Here's an example of what you would earn for a $10 trip fare with a surge rate of 1.5x:

$2 base
$3 distance
$5 time
Surge multiplier of 1.5x = $5
Toll: $1.00
Gross fare: $16 ($10 + $5 + $1 toll)

Your net payout for this trip would be $15 - the Uber service fee + $1.00 toll.

Payment statements display the surge amount separately.
Link: ... b89a440eec

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