The Independent Singapore making snide remarks over Uber’s advertisements in MRT stations and blamed them for the surge in prices during the train disruptions?
Really now? With or without Uber advertising, people will still call uber. Furthermore, surge prices are based on supply and demand. Is it surprising there is a surge when everyone is trying to call uber?
Uber surge pricing is an automated algorithm, similar in some ways to airline pricing. When an excessive number of Uber ride requests are made within a short duration in a given area compared to the number of Uber drivers currently on the road, the Uber prices of all rides in that area is increased by a multiple (displayed as 1.5x or 2.1x, for example).
The degree of the multiple is determined by the ratio between the number of demands for an Uber ride and the supply of Uber drivers at the moment when the surge goes into effect. Uber pricing is continuously fluctuating and so the Uber rates at any one time and place may change.