Either way I like Uber but I just don't understand how there is always surge pricing. This is still has not deterred me from using it but still I wonder...
Either way I like Uber but I just don't understand how there is always surge pricing. This is still has not deterred me from using it but still I wonder...
Read their blog, it's pretty interesting. Fred Wilson also discusses the findings here: http://avc.com/2014/10/the-cost-of-loyalty/
On a related note, whenever I see the surge pricing, I just see a failure of Uber to recruit enough drivers to meet demand. I don't view it as the dynamic pricing libertarian wonderland that Uber does. I also see the surge in effect almost every time I open Uber, so I pretty much never do unless I'm in a dysfunctional city (cough SF cough) and there's not another choice.
I think that in the long run, their continued insistence to not clear the market and to instead be able to show lots of empty cars driving around trolling for 3x+ fares through surge pricing is going to make public opinion quite negative among the general public.