UBER – DYNAMIC PRICING
UBER – DYNAMIC PRICING.
South Africa, 30 December 2014:New Years eve is upon us and as we all celebrate the end of the year, we wanted to take the opportunity to explain dynamic pricing to you as well as remind you why Uber is the safest and most efficient way to get around South Africa this New Years Eve.Uber was founded with the goal of ensuring safe rides for everyone whenever, wherever. Our commitment to riders begins with connecting them to the safest rides on the road and extends to being the most reliable transportation option available. We take that role very seriously in the 260+ communities Uber serves and we work hard to ensure a safe, reliable options – for everyone.
Dynamic pricing is a powerful model that allows users to get a ride when they need it most – especially during the busiest nights of year, like New Year’s Eve. During times of peak demand – when there are not enough drivers on the system – fares increase so as to incentivise more drivers to come onto the platform. Dynamic pricing solves the perennial challenge of never being able to get a ride on New Year’s Eve
[or after a major sporting event, or during bad weather].
The Uber platform is a marketplace of riders and drivers – drivers are all independent transportation providers who are not bound by exclusivity. Many drivers own their own businesses or work on multiple platforms. Because Uber doesn’t employ drivers, every driver has a choice of how he or she spends his/her time.
Dynamic pricing helps bring demand and supply into line, when necessary by incentivising more drivers to come onto the platform. The dynamic pricing algorithmically increases prices to encourage more drivers to come onto the platform and reduce demand. When demand and supply are in line, prices quickly return to normal – and riders can continue to rely on a safe, hassle-free transportation option.
The fact that dynamic pricing is in place is communicated repeatedly to a user – and requires confirmation – before the user can request the trip. Ultimately, we think it’s better for a user to open the app, see dynamic pricing in place and have a choice about whether to proceed than to open the app and see that there are no cars available. Dynamic pricing helps ensure that reliability of choice. When dynamic pricing is in effect, riders have multiple opportunities to choose, confirm and accept increased fares or opt to be notified when prices drop. Dynamic pricing allows riders to have a choice rather than having no cars available at all.
Uber offers a safe, convenient & reliable choice that didn’t exist 4 years ago. Riders are empowered with more options, and Uber has increased the mobility of riders during the busiest nights of the year
For a video explanation, please see here:
There is also an in-app feature that notifies users when pricing drops:
Fare Split is another in-app feature users can utilise when sharing a ride to split the fare:
For a more detailed look at dynamic pricing, see this blog post:
The Uber network is now available in over 260 cities across 50 countries and 6 continents.
Uber’s mission is nothing less than a revolution in the way citizens of the world move, work and live. It aspires to transform the way people connect with their communities and to bring safety, reliability, convenience and opportunity to transport systems.
To request a ride, users must download the free application for Android, iPhone, Blackberry 7, Windows Phone or register for Uber at www.uber.com/go.
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