Premium on-demand car service Uber has received a positive response ever since it launched in Delhi and Bangalore earlier this year and Hyderabad more recently. But now Uber is turning on its ‘Surge Pricing’ model in the country, starting with Delhi. We are not sure whether this will have any significant impact considering Uber currently operates only in small swathes of the city and its current pricing is already considered to relatively low considering the premium cars one gets.
Uber explains its surge pricing model saying, “When the supply of cars gets tight, we will raise the price in increments over time and conversely as supply opens up, we’ll lower the price.” So essentially at peak times like New Years, expect the tariffs to be higher than usual. In fact, Uber says that Delhi customers should brace themselves for a 1.25x price rise. Users will be notified about this rise on the app whenever surge pricing kicks in. In order to ensure there is no backlash, Uber will require customers to manually input the surge price on the app before they can order a ride.
Uber explains its surge pricing model saying, “When the supply of cars gets tight, we will raise the price in increments over time and conversely as supply opens up, we’ll lower the price.” So essentially at peak times like New Years, expect the tariffs to be higher than usual. In fact, Uber says that Delhi customers should brace themselves for a 1.25x price rise. Users will be notified about this rise on the app whenever surge pricing kicks in. In order to ensure there is no backlash, Uber will require customers to manually input the surge price on the app before they can order a ride.
There was a lot of hue and cry in the US, when Uber increased its tariffs on Thanksgiving and Christmas. The rates were nearly 8 times the usual post surge pricing. US blog ValleyWag published a scathing piece accusing Uber of giving into greed and putting money ahead of its customers.
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