Uber’s surge pricing surprises New Years Eve revelers
January 14, 2016
In the first hours of the 2016, party-goers looking for a safe way home found themselves slapped with an expensive ride, ending their celebrations.
Several reports began popping up on New Year’s Eve, warning people to be wary of Uber surge prices. Those looking for a safe way home were unprepared for how high prices would skyrocket.
Uber is an app that works as an independent taxi service. The customer requests a ride and awaits an Uber driver who is hired as an independent contractor. Drivers receive weekly pay and tips.
When customers quickly outnumber drivers, Uber implements surge charges to fulfil the requests.
“When demand for rides outstrips the supply of cars, surge pricing kicks in, increasing the price,” said Uber in a release.
During a busy time such as New Year’s Eve, customers can pay as much as nine times the normal fare for a ride. Social media exploded the next morning over the costly rides.
Uber notified consumers to be prepared for upped prices on New Year’s Eve.
“Surge Pricing shouldn’t be a surprise,” they said. “To avoid the highest fares, head to the festivities early or catch a ride right after midnight.”
Uber defends the spike in prices by claiming it’s a win-win situation. CBS reported Uber conducted a case study on busy nights, concluding that upped fares reduces requests and increases response.
Uber claims that it can’t exist without this practice.
“Without surge pricing,” Uber stated. “Uber is not really Uber—you can’t push a button and get a ride in minutes.”
Marley Walkup, junior transfer student, used Uber for the first time on New Year’s Eve in Tacoma.
When she first requested a ride around 1:30 a.m. she agreed to a 2.5 times charge and was told the driver was three minutes away.
The driver arrived past 2 a.m., which increased the charge to 5.5 times the normal amount, unknowingly to Walkup until the next day.
According to Walkup, the driver failed to inform her of the increased charge and paid $263 for a nine mile drive. The original price at a 2.5 times increase was $120.
Because of this, Walkup said she will never use Uber or any similar service again.
“I’ll just take a cab,” Walkup said.