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How Uber’s dynamic pricing model works

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We’ve put together a quick and easy guide on how the Uber dynamic pricing model works, so you can know why Uber prices change and what the usual peak hours are for an increased Uber fare.

How does Uber’s pricing work?

When you go to request a ride on a Saturday night, you might find that the price is different than the cost of the same trip a few days earlier. That’s because of our dynamic pricing algorithm, which adjusts rates based on a number of variables, such as time and distance of your route, traffic and the current rider-to-driver demand. Sometimes, this can mean a temporary increase in price during particularly busy periods.

Why do Uber rates change?

When demand increases, Uber uses variable costs to encourage more drivers to get on the road and help deal with number of rider requests. When we notify you of an Uber fare increase, we notify drivers as well. If you decide to go ahead and request your ride, you’ll get an alert on the app to make sure you know that the rates have changed.

Price normalisation

Once more drivers get on the road and ride requests are taken, the demand will become more manageable and fares should revert to normal.

Uber peak hours

If you’re a regular rider, you’re probably already aware of Uber’s peak timings, where increased demand and prices are more likely. These include:

  • Friday and Saturday nights
  • After-work rush hour
  • Big events and festivals

Dynamic pricing helps us to make sure there are always enough drivers to handle all our ride requests, so you can get a ride quickly and easily – whether you and friends take the trip or sit out the surge is up to you.