Surge Pricing 101

Reliability. It’s what you expect when you tap request. One of the ways Uber is able to remain so reliable is the dynamic pricing system we call “Surge Pricing.”

There may be short periods when demand heavily outweighs the amount of cars on the road. During those brief peak times the system will dynamically adjust prices upwards in increments to encourage more drivers to come online, and ensure that those who need a ride the most can always get one.

What is Surge Pricing?

Surge pricing is an automated system based on the simple principles of supply and demand. When rider demand is higher than drivers on the road, pricing will automatically increase. Higher pricing encourages more drivers on to the system when you need them most and ensures those who need a ride won’t be left stranded. Prices automatically return to normal as soon as there are enough cars available on the road.

**Remember, as a technology company, drivers use our platform to decide when and how long they work. These flexible work hours mean we can’t control how many cars are on the road at any given time.

How Does Surge Pricing Maximise the Number of Uber Rides?

We are able to get a far greater number of drivers on the system when Surge Pricing is in effect – it’s basic economics. Higher prices encourages more supply to come online. It gets some drivers out to work early mornings, weekends, and during holidays. It keeps other drivers from going to alternatives like renting their car out for the night, or trying their luck at hustling rides on the street. Higher prices means more cars, means more rides, means more people getting around the city efficiently, safely AND in style.

Avoid Surge Pricing?

No surprises when you estimate your fare. Surprises aren’t for everyone. That’s why we’ll always notify you in BIG, BOLD print if surge pricing is in effect. Enter your drop off location and get an estimate of the cost of your ride.

A small wait can save big. Our driver-partners are informed immediately as soon as demand goes off the charts and surge applies in any area. Within minutes cars from the nearby areas come in your area and prices go down. So, You can always choose to wait and save some money.

We know the whole reason you use Uber is that you’ve got places to go and people to see. We want to get you a reliable ride, and sometimes that will require surge pricing to get more drivers on the road. But at those times when your schedule is flexible, you can hold out for a ride that’s as affordable as it is reliable.