Surge pricing and How Much Do Uber Drivers Make

Posted by jeenniwill on July 24th, 2017

It still remains to be seen how this change will be perceived by customers. However, drivers appear to be the sole reason for the introduction of surge pricing as Uber goes on to state that, "The extra money from these orders goes toward financial incentives for delivery partners as well as our other operational costs. These partner incentives look at past patterns and aim to predict where and when there will be high demand and to encourage more people to get on the road in these locations."

You might wonder how much do Uber drivers make and how surge pricing encourages more drivers to get on the road. Well, drivers only earn money when they are on the road. However, if there are issues like traffic congestion on the roads, most drivers do not feel the need to spend hours in traffic only to earn the same thing as when they drive when roads are free. Hence, Uber increases fares so the drivers can be duly compensated for their trouble. 

Uber has still not mentioned to what extent consumers will gain from surge pricing. However genuine the reason for this move may be, I think it is also important to consider the negative impact this can have on the community of UberEATS customers. They now have to face price uncertainty. The introduction of surge possibility throws away the affordability guarantee UberEATS customers are used to.