An Update On Surge Pricing In Delhi
Written byUber regularly does surge pricing when demand outstrips supply. Remember, we do not own cars nor do we employ drivers. Higher prices are required in order to get cars on the road and keep them on the road during the busiest times. This maximises the number of trips and minimises the number of people stranded. The drivers have other options as well. In short, without Surge Pricing, there would be no car available when people need it.
Now granted, that the prices are sometimes higher than our usual low fares. But we notify every customer in big bold images in text, which each customer has to confirm in order to request. Furthermore, every customer also has to type in what the multiplier was in order to double confirm that they understood what they were agreeing to.
Airlines and Hotels are more expensive during busy times. Uber is as well. We don’t just charge to make a buck – we take a small fee of the transaction, and the vast majority of the fare goes to the driver so that we can maximise the number of drivers on the road. The point is in order to provide citizens with a reliable ride, prices need to go up temporarily. Despite this, 92% of the trips in Delhi happened on regular fares, even during the first phase of odd-even scheme.
In the end, Uber is reliable, always, and we will create a system that maximises the number of people that can get safe and reliable rides. Consumers always have a choice to take a surged trip. Not surging is saying citizens shouldn’t have the option. Not surging is saying we should be just like a taxi and be unreliable when people need us most. These are outcomes that take choices away from the consumer and make it harder to get around cities – these are outcomes that we put a lot of hard work in to avoid so that at least you have the choice if you want one.
However, given the threat of the Delhi government to cancel permits and impound vehicles of our driver partners, we are temporarily suspending surge in Delhi with immediate effect. We hope to work with the government to keep Delhi moving especially during this time when the citizens need us the most.