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Summary Of Everyone Hates Uber's Surge Pricing

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In the article, “Everyone Hates Uber’s Surge Pricing – Here’s How to Fix It” by Utpal M. Dholakia, the writer addresses how Uber increases its usual fare prices using a multiplier to counteract a scarcity of drivers available, this is known as surge pricing. The article discusses how using microeconomics, Uber creates a market price for drivers and riders to calculate surge prices while also giving insight as to how Uber could make surge pricing more appealing to the consumer. Although the goal of surge pricing is mainly to bring an “equilibrium price” between the supply of drivers and the demand of riders, most consumers are uncertain as to what actual influences the price fluctuation.
The thesis of this article explains that despite surge pricing achieving the goal that it’s supposed to, (bring more drivers online and present available services to consumers who need them the most) most believe Uber is taking advantage of customers by using extreme multiplier prices. While the author states that this issue between price and product/service is giving Uber a relative degree of bad press, he also gives solutions as to how to fix this problem.
A key fact presented in the article is that the surge multiplier is basically a black box because no one outside of Uber actually knows how high prices will go, or …show more content…

The article doesn’t bash Uber for using surge pricing, however its state how they can improve the perception of the larger fares by something as simple as letting the rider know the utility they received because they chose Uber’s services. This article is extremely well written and states its purpose so that the reader can understand it easily. Because this article has some interesting ideas regarding Uber I would recommend this article to others. The marketplace for Uber is expanding greatly so I believe this is an extremely relevant

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