Understanding surge prices and how they work

High Demand Periods:

• Surge pricing typically occurs during peak times, such as:

  • Rush hours: Morning and evening commutes.

  • Special events: Concerts, festivals, or sports games.

  • Bad weather: Rain, snow, or extreme heat, when more people opt for ride-hailing.

  • Holidays: New Year's Eve, Halloween, or major public holidays.

Driver Shortages:

• If fewer drivers exist in a specific area, the system raises prices to attract more drivers to that location.

• How Surge Pricing is Calculated

1. Dynamic Supply and Demand:

• Surge prices are calculated algorithmically based on the current number of ride requests versus the number of available drivers in your area.

2. Location-Specific:

• Surge pricing can vary even within different parts of the same city.