Quantcast
Transport Cars

Uber Keeps Drivers Off the Road So Prices Don’t Go Too Low

Excerpt from The Verge

Skift Take

Sometimes the invisible hand of the market is a little more concrete than others.

— Jason Clampet

… this Valentines day, while traveling through San Diego in an Uber car, Lane heard something that disturbed him. “The driver had a Ford Sync system, and it read his text messages out loud.” The message, which came wedged between numerous texts about a promotion for free roses, said, “UberX is very close to SURGE. It’s Valentine’s Day! People will be out all night and we didn’t activate new drivers to make earnings even higher this weekend.”

Uber’s surge pricing has been a controversial feature of the company’s business for some time. It uses an algorithm to raise and lower the price based on demand. At extremely busy times, especially holidays, rates can be as many as seven times the normal price.

Read the Complete Story →

More Stories Below ▼
4 Hospitality Trends We’re Tracking at Skift This Week
The Vacation Rental Technology Ecosystem
Trend Report

The Vacation Rental Technology Ecosystem

Daily Travel Startup Watch: GapDoc, Xenos Local and More
The Rise of Personalized All-Inclusive Luxury

The Rise of Personalized All-Inclusive Luxury

9 Digital Trends We’re Tracking at Skift This Week
The State of Travel Media 2015
Trend Report

The State of Travel Media 2015