All You Need To Know About Uber’s Dynamic Pricing


Uber

*** If you not yet Uber’ing, download it now and use our promo code: MCBN for up to R200 off your first ride. We like to think we will be helping to ease the dynamic pricing pains and getting you home safe too!***

New Years eve is upon us and as we all celebrate the end of the year, we wanted to take the opportunity to explain dynamic pricing to you as well as remind you why Uber is the safest and most efficient way to get around South Africa this New Years Eve.

Uber was founded with the goal of ensuring safe rides for everyone whenever, wherever. Our commitment to riders begins with connecting them to the safest rides on the road and extends to being the most reliable transportation option available. We take that role very seriously in the 260+ communities Uber serves and we work hard to ensure a safe, reliable options – for everyone.

Dynamic pricing is a powerful model that allows users to get a ride when they need it most – especially during the busiest nights of year, like New Year’s Eve. During times of peak demand – when there are not enough drivers on the system – fares increase so as to incentivise more drivers to come onto the platform. Dynamic pricing solves the perennial challenge of never being able to get a ride on New Year’s Eve [or after a major sporting event, or during bad weather].

The Uber platform is a marketplace of riders and drivers – drivers are all independent transportation providers who are not bound by exclusivity. Many drivers own their own businesses or work on multiple platforms. Because Uber doesn’t employ drivers, every driver has a choice of how he or she spends his/her time.

THE BEST TIME TO RIDE
NYE is our busiest night of the year! We expect demand to pick up around 18:00 as people head out for the evening, with an initial peak in demand around 21:00. While surge pricing may be in effect for the whole night, we expect the highest fares between 00:30 and 04:00.

Uber 2

ALWAYS NOTIFIED IN ADVANCE
You’ll always be notified in advance and asked to confirm any increased rates, and you can always estimate your fare before requesting.

SPLIT YOUR FARE
You’re likely sharing the night with friends or family, so why not share the cost of your ride home too? Split the fare and no one gets left behind or stuck with the bill.

Dynamic pricing helps bring demand and supply into line, when necessary by incentivising more drivers to come onto the platform. The dynamic pricing algorithmically increases prices to encourage more drivers to come onto the platform and reduce demand.  When demand and supply are in line, prices quickly return to normal – and riders can continue to rely on a safe, hassle-free transportation option.

The fact that dynamic pricing is in place is communicated repeatedly to a user – and requires confirmation – before the user can request the trip. Ultimately, we think it’s better for a user to open the app, see dynamic pricing in place and have a choice about whether to proceed than to open the app and see that there are no cars available. Dynamic pricing helps ensure that reliability of choice. When dynamic pricing is in effect, riders have multiple opportunities to choose, confirm and accept increased fares or opt to be notified when prices drop.  Dynamic pricing allows riders to have a choice rather than having no cars available at all.Uber offers a safe, convenient & reliable choice that didn’t exist 4 years ago. Riders are empowered with more options, and Uber has increased the mobility of riders during the busiest nights of the year

There is also an in-app feature that notifies users when pricing drops:

     http://blog.uber.com/surgedrop

Fare Split is another in-app feature users can utilise when sharing a ride to split the fare:

     http://blog.uber.com/qld-fare-split

For a more detailed look at dynamic pricing, see this blog post:

     http://abovethecrowd.com/2014/03/11/a-deeper-look-at-ubers-dynamic-pricing-model/

Rumoured to have the blue-prints for Krang's TechnoDrome, stolen straight from Dimension X, he’s the type of guy who exudes so much coolness that he adds whole countries on Facebook at one time instead of just people. Always up for a party and a Tequila shot or two this is the guy who we always call first, both before and after a night out…

Comments 2

Comments are closed.

Back to