What is Uber’s Surge Pricing
Uber’s unique Surge Pricing model takes into account the demand of riders and the supply of drivers. When there is high demand from the riders, surge pricing is activated to incentivise driver to go online and make a trip.
Surge pricing is most likely to occur peak hours (morning office rush and evening home rush), major events, bad weather and train breakdowns. Your driver app will highlight where this dynamic surge pricing is in effect so you know where demand is highest. Different area can have different surge multiplier. In general, the darker the red, the higher the surge.
Surge pricing is based on the rider’s pickup location.
While you may receive a ride request while your vehicle is in a surging area, your rider’s pickup location may not be surging.
When you receive an incoming surge trip, the screen will display the surge multiplier.
How much would Driver earn for a usual $20 trip with 1.5X Surge
Fare – $20
Toll – $3
Surge multiplier of 1.5x = $10
Gross fare: $33 ($20 + $10 + $3 toll)
Nett Fare: $30 – 20% UberX commission + $3 toll = $27
Surge multiplier only applies to Fare. Toll (ERP) are not subject to surge