Most college kids are familiar with Uber. It's convenience and dependability leads lots of people our age to turn towards their services. One of the big problems with Uber is it's high pricing, and according to an article from Time Business, it certainly doesn't look like they are going down any time soon. This price hike phenomenon is becoming better known to Uber users, and it's called surge pricing.
Uber has increased prices to better motivate drivers to go out and pick people up in crowded cities. The goal for them to increase the amount of drivers that go to busy cities, where the demand for Uber is going to be the highest. Contrary to what Uber thought was going to happen, surge pricing is hurting them a lot more than helping. Demand for Uber is decreasing drastically, customers just aren't willing to pay as much as they're charging. Drivers are actually staying away from areas with surge pricing due to the decrease in demand. As popular as Uber has become, their business is dropping quickly, "surge pricing" is only hindering them.By: Cole Dolan
Osborn, Katy. "Uber's Surge Pricing Doesn't Work The Way It's Supposed To, Says Report." Time Magazine. N.p., 29 Oct. 2015. Web. 1 Nov. 2015.
As a college student who uses Uber often, I can testify that surge pricing is hurting Uber's business. If the surge rate gets too high my friends and I will call a cab instead of an Uber since cabs do not change their rates depending on the time of day. Using Uber is convienant, but a lot of the time the service isn't worth it.
ReplyDeleteUnfortunately it can be expensive, Uber is a good idea just needs a few tweaks if they want to stay relevant.
DeleteI believe these prices are outrageous. I recently had to use uber from a ten minute drive from my dorm. The surge was 3.4 times the regular price and turned out to be a 45 dollar ride, with a twenty dollar promotion code. Now I call cabs and have closed all of my uber accounts.
ReplyDeleteWow, I realized the surge rates were bad but I did not know it could cost someone that much for a ten minute ride.
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