The problem with this is that the people who get the rides in surge pricing are not the ones with the most demand, but those with the most resources. It's an inherently classist system. The surge price, to that rich person coming out of work to catch a cab to that upscale restaurant for dinner is pennies. But the surge price to the single mother who desperately needs the cab to get to school to pick up her kids on time before the school closes and they have to walk home in the rain with out jackets is breaking the bank.
This does not make things "better for everyone" as the article argues. It only ensures that the wealthy always have it good, instead of having to compete for the limited service with everyone else. And it doesn't give the rides to those who truly need them most.