Catching an Uber on New Year’s Eve? It’ll cost you
Uber expects to be busy New Year’s Eve, and its policy of raising rates when demand is high, or surge pricing, is economics 101. Low demand leads to lower prices. Higher demand means a company can jack up prices and customers will still pay.
Defenders of the surge pricing policy say Uber is transparent, warning riders that getting from point A to point B will cost them more. Still, the concept is a new one for many people,so even if there’s no trickery involved, there’s still likely to be pushback from frustrated users whocan’t understand why their car delivery service raises prices, right when they most need a ride.
Click the media player above to hear more.
In Los Angeles, Uber reports it expects highest demand and highest fares between 12:30 and 4 a.m., with an average ride at 2 a.m. probably costing more than $100.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
