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Surge Pricing is a failure, Uber plans to kill it

There is some unofficial news from Uber that they are planning to kill surge pricing in near future. This news is good for riders but bad for drivers, some of the drivers have whole motivation to drive in surge only. They keep looking for surge area and drive there only.
highest surge rate
one of the highest surge rate
Its common to see 2x to 5x surge during office commute hours in india, but above image is the highest point documented. You must be annoyed by surge as a rider but earned more as a driver. Lets see what surge means for everyone.


Surge Pricing for Riders

It makes unpredictable to riders, what will be fare at that point of time, when they need it badly to reach airport, railway station, hospital or back to home after game. Fix price policy will make it fixed.

Surge Pricing for Drivers

Most of the drivers joined uber for earning more then their regular taxi. Uber cost less in normal fare condition then normal taxi ride. Its is less then approx 30%, still drivers are making more money due to surge pricing. Now they will not be able to make money or have to work more number of hours.

Uber searching solution with Artificial Intelligence

Uber is trying to kill surge pricing with the help of AI. AI can predict where its going to be high demand on which location, then uber can send more drivers to that area to make availability higher.


Think of it this way: When a cricket match lets out, it's a no-brainer that there's a ton of demand. Drivers know that. What's harder, Schneider explains, "is to find those Tuesday nights when it's not even raining and for some reason there's demand — and to know that's coming. That's machine learning." Jeff Schneider, engineering lead at Uber

Surge Ban in Delhi

Delhi CM threatened to cab aggregators (UBER, OLA) to flush surge pricing otherwise their licence to operate will be cancelled. This order came during second phase of odd-even. Uber and OLA obeyed it and removed surge, but from the day #oddEven ended surge was back. Again there was order issued to stop surge.

Such occurrences happened worldwide , where uber was ordered to remove surge for time being or they removed it itself. Still it's pain for riders and denting uber's image worldwide.

What do you think, as a rider, as a driver, is it good move or a bad move?

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