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> there appear to be common two ways of allocating scarce resources in situations like this: either through price, or...

But the quantity of the resource (Uber drivers) is not fixed. If you allow a higher surge price, you get more drivers.

More people have access to the second method. Many people would rather have a 25% chance of getting through and paying the lower price than not being able to afford a ticket at all.

>Why do people think the latter is "more fair"?

I have no idea what unfortunate psychological characteristic of the human brain leads so many to oppose price gouging and markets, but here is some tangential discussion:

http://bleedingheartlibertarians.com/2013/10/price-gouging-a...