Comment by nemo44x | Hacker News Reader

Comment by nemo44x | Hacker News Reader

I've used Lyft a few times recently. I'm a little suspicious Uber is using surge fair tactics on users that have agreed to the pricing in the past when there is in fact no surge occurring.

When traveling for work I often use Uber and recently there was consistent surge pricing. The first day it made sense since it was raining. But then the next few times I used it there was surge pricing - not much, like 1.1x or 1.3x. I agreed because it wasn't too much more and I needed to get to my meetings and it can be expensed. I mentioned to my Uber driver there was a surge and he said it didn't come up as a surge for him. The next trip later that day the surge was 2.2x

But then when I got back home I noticed every time I've brought the Uber app up there is a "surge". Even during fine weather and non-traditional surge times. I look outside and there are taxis available (NYC) and I opened Lyft and there were plenty of options without any surge.

It was probably bad luck (I don't really think they'd get that greedy that quickly) but it made me try Lyft and I had the exact same experience as Uber.

I suppose this is the market at work.

I strongly suspect that Uber has (or will, depending on a particular market's maturity) smooth the curve on surge pricing.

I think most customers are initially averse to ever paying more than 1x, but once you've gotten used to paying 1.1x or 1.2x, you realize it's still typically much cheaper than a taxi. It's ultimately in everyone's interests for prices to adjust quickly and smoothly to demand.

Its also in uber's best interests to charge more money if possible.

Well yeah, by "everyone" I meant to include both Uber and the drivers, along with their customers.

This depends on country. In Sweden for example, 1.3x UberX rates are equal to a standard taxi.

Surge pricing isn't just about getting a larger cut for Uber, it's about increasing the pool of drivers on the road to serve rides and eliminate shortages.

I'm guessing the smoothing you describe comes from the fact that the pool of uber drivers has grown dramatically of late.

> once you've gotten used to paying 1.1x or 1.2x, you realize it's still typically much cheaper than a taxi.

Anyone know if these numbers from 2014 still holds up?

http://www.businessinsider.com/uber-vs-taxi-pricing-by-city-...

I have no idea why they'd assume that people will tip taxies 20% and not tip the Uber drivers (who presumably make less?) -- it certainly seems like an odd way to compare prices ("a is cheaper than b when you choose to give b more money!"). Does Uber have some kind of policy on tipping? And how would that even work, assuming you pay cash?

I do wonder how much of that lower price on Uber is due to tax evasion and dodging licenses and registrations etc.

Because tipping taxi drivers is expected and tipping Uber drivers is not.

I've taken both NYC taxis and Uber many times and always tip in a taxi and never in Uber.

> Does Uber have some kind of policy on tipping?

Yes. Uber does not encourage tipping and cash payments aren't allowed.

It's highly dependent on the market. I rarely see surge where I live (Seattle), but I was in a different city a few weeks ago and only saw surge pricing the whole time I was there.

Right. Uber understands you don't have alternatives in that city, you don't know the city, don't have your car, and you need transit. You're in tourist-mode, so you're going to get tourist pricing. Otherwise Uber is leaving money on the table.

Do you have any evidence that surge pricing is individualized?

... Or they just don't have a lot of drivers in some markets.

another data point: I live in Seattle, too, and see surge all the time.

In a small city (Cincinnati), Uber only really surges on Friday and Saturday nights, mostly around the downtown neighborhoods, and then for major events with a few thousand+ people in one place.

Probably because NYC has strict limits to the number of licenced taxi's on the road creating a supper/demand imbalance, largely due to the medallion system, which is not found in most other medium sized cities resulting in a much greater supply.

The first time I used Lyft was due to a "free ride" coupon given to me by my Uber driver. There is a massive overlap of drivers.

I try Lyft first as surge pricing seems scarcer on that platform, but I always check Uber if Lyft has surge pricing or my wait time is too long.

To quell your suspicion you could download the driver app and take a look at the surge map. The surge values aren't a secret.

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