Politician Spock
Footballguy
When Uber first arrives in a market, drivers LOVE surge. But as the market matures, it can get to the point where drivers learn to drive AWAY from surge areas. This is because riders HATE surge, so as the market matures riders learn how to avoid paying surge. It gets to a point where when surge kicks in, very few to no ride requests occur until the surge ends. When the market is in that state, a driver is better off driving away from the surge area if they want to get a ping anytime soon. However, since most of Uber's drivers new to driving for Uber, Uber gets what it wants. There are a ton of riders waiting for surge to end, and a ton of stupid drivers heading to the area to get a surge fare (but they will never get). Surge ends, and riders/drivers get matched up. Eventually those drivers get sick of being baited by a surge only to not get a surge fare. Which is one of the reasons why Uber has such a ridiculously high turnover rate on its drivers.I also don't think they have their surge algorithms even close to correct. Before they changed strategy you would rarely see a surge about 2.5 here, now there are surges of 5.9 regularly. Then those areas get saturated with drivers waiting for passengers who are waiting for the surge to go down. Then the surge goes from 5.9 to 3.5 then to 2 within 15 minutes. The surges don't seem to incrementally increase either, they go from base to 3.9 to 5.9 within minutes. Gradual increases and decreases seem to be the right method but Uber has chosen not to institute that model, not sure why. Would make it more predictable for everyone.Politician Spock said:True. But Uber's surge model is doing it backwards in regards to how people process and feel about price changes. People don't like paying a higher price... but they LOVE discounts. Uber's base rate should be set high, and as supply outweighs demand the base rate should get discounted. The revenue to Uber would be nearly identical, but people would love and brag about the discounts they got, and know what to expect to pay when rider demand is high. Instead people getting pissed off paying surge.elbowrm said:Pure supply and demand though - would you rather have 6x surge pricing and get home, or 1x and no cars available to drive you?
seriously