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What is Uber surge pricing?

Uber surge pricing, also known as "dynamic pricing," is a system that automatically increases the price of an Uber ride when there is a high demand for rides in a specific area or during a certain time.

During times of high demand, such as during rush hour or during a large event, there may be more people requesting rides than there are available drivers. When this happens, the Uber app will automatically increase the price of the ride to incentivise more drivers to be available and to balance supply and demand.

The increase in price, also known as the surge multiplier, can range from 1.2x to 3x or more, depending on the level of demand. The surge multiplier is visible to passengers in the app before they request a ride, so they have the option to accept the increased price or wait until the demand subsides and the price returns to the normal rate.

Surge pricing aims to ensure that there are enough drivers available to meet the demand for rides, and also allows drivers to earn more money during times when demand is high. However, it can be frustrating for passengers who may not want to pay the higher price for a ride, or who may not have another transportation option available.


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