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Stop complaining about Uber's surge pricing

MAYA KOSOFF (/AUTHOR_ARTICLES_ALL.CMS?QUERY=%22MAYA KOSOFF%22&AUTHOR=MAYA KOSOFF) 0 NOV 1, 2015, 09.08 PM

Halloween is one of Uber's busiest nights of the year.

When there's high demand for Uber vehicles on holidays like Halloween, though, there's also bound to be surgepricing, a feature most Uber users aren't crazy about.

Uber

What surge pricing looks like on your phone.

Surge pricing happens when there's a high demand for Uber vehicles in a particular area. During times of highdemand - on weekend nights, on holidays, or during bad weather - Uber enacts surge pricing(https://support.uber.com/hc/en-us/articles/201836656-What-is-surge-pricing-and-how-does-it-work-),which charges a multiplier on every fare during busy times. Uber says that by raising its prices, it encouragesits supply - drivers - to get out on the road to keep up with increased demand.

Uber will never spring surge pricing on you without you consciously acknowledging what you're paying for.When surge pricing is happening, you'll be notified before you can even hail the car. Uber's app puts it in big,bold print so you can't miss it. And when surge pricing rates are more than 2x, customers have to type in themultiplier to make sure they know what to expect.

This doesn't stop people from complaining about surge pricing.

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Sometimes the complaints seem more justified than others: Last December, Uber Sydney temporarily activatedsurge pricing during a hostage crisis (http://www.businessinsider.com/uber-instituted-surge-pricing-during-a-hostage-siege-in-sydney-2014-12) in the city's central business district. The company said it was an attemptto get more drivers into the area to pick up people who didn't have a way home, but others saw it asopportunism, and took to Twitter to complain.(https://twitter.com/Uber_Sydney/status/544319760809222144) Soon after, Uber made all rides home fromSydney's central business district free (http://www.businessinsider.com.au/ubers-surge-pricing-quadrupled-fares-in-sydneys-cbd-then-a-backlash-saw-them-offer-free-rides-instead-2014-12#ixzz3NUBppkkm).

However, people are far less justified in their complaints when surge pricing is introduced to get people homefrom bar crawls or on holidays that encourage people to go out.

That doesn't stop irate customers from screenshotting their Uber bill and posting it on Instagram or Twitter inoutrage.

On days after holidays when demand for Uber is high, sticker-shocked customers complain about their Uberbills. For instance, one woman in Baltimore awoke the day after Halloween last year to discover she had takena $362, 20-minute Uber ride the night before (http://www.businessinsider.com/women-raises-362-to-pay-for-uber-ride-2014-11) and didn't have enough money to pay her rent. She posted a screenshot of her bill onInstagram and ended up crowdfunding $512 on GoFund.Me the next day.

In light of complaints from angry customers, Uber has begun to pull out all the stops to let its customers knowwhat to expect on nights with high surge pricing. The company warned users in a blog post last week(https://newsroom.uber.com/2015/10/halloween-ride-guide/) to check its fare estimate tool to avoid surgepricing on Halloween. Before New Year's Eve last year, Uber published a blog post telling customers when toexpect to pay more for surge pricing.

Uber also sent out an email to customers in New York City (and presumably in other markets, too) called "ReadBefore You Ride: How to Avoid Expensive Fares on New Year's." In it, Uber pretty explicitly lays out how youshould go about planning your Uber ride so you can avoid high surge prices.

It's nice of Uber to do this, but the company shouldn't have to apologize for surge pricing.

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Reuters/Jim Young

A visitor to a house covered in Halloween decorations looks over the scene in the front yard in the Chicagosuburb of Naperville, Illinois.

Uber is a relatively new and quickly growing business. It does not have any sort of responsibility to itscustomers to keep prices low. It is trying to make money, as companies often want to do, and on nights likeNew Year's Eve, Uber stands to generate more than $100 million in revenue(http://www.businessinsider.com/uber-new-years-eve-revenue-charts-2014-12).

Uber is by no means unique in its dynamic pricing strategy, either. Airlines have similar tactics to sell ticketsand hotels use dynamic pricing to book rooms, especially during busy holiday seasons. As Matt Yglesiaspointed out in Slate(http://www.slate.com/blogs/moneybox/2014/01/08/uber_surge_pricing_more_transparency_than_people_want.html)what makes Uber different is that the company is at least up front and transparent about how much you'regoing to pay when the price spikes.

If you don't want to pay a crazy-high fare tonight, you're in luck because Uber is not the only method oftransportation available and nobody is making you use Uber (or Lyft, or any other ride-hailing service).

You can walk. You can try to call or hail a cab. You can take a subway or a bus if you live in a city. You can juststay home and have a party with your friends. Or you can wait a few hours, since Uber expects the worst surges(http://www.businessinsider.com/these-are-the-best-times-to-hail-an-uber-and-beat-surge-pricing-on-new-years-eve-2014-12) to be between 12:30 and 2:30 a.m.

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