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Uber is going to stop paying drivers surge.

Discussion in 'Surge' started by aJoe, May 20, 2017.

  1. Gung-Ho

    Gung-Ho Well-Known Member

    Location:
    East of Omaha
    Driving:
    UberX
    Eventually they will do away with surge pay to the drivers and replace it with guaranteed boost zones thereby regulating how much they have to pay the drivers while at the same time charging customers what the true surge rate would be. They [uber/lyft] are massive data collectors and when their algorithms are perfected to predict surges at certain times and locations they will simply show them to drivers as "boost" zones.

    The game is rigged by the riggers and you as drivers can't win.
     
  2. lesh11

    lesh11 Well-Known Member

    Location:
    Colorado
    Driving:
    UberX
    That would eliminate the reason for surge. Surge pricing is designed to bring more drivers into the area to meet the demand for rides.
    If drivers don't get paid surge rates, no drivers are going to show up and the riders will be frustrated. This will hurt uber.
     
  3. Gung-Ho

    Gung-Ho Well-Known Member

    Location:
    East of Omaha
    Driving:
    UberX
    What I said was they will replace surge with predetermined boost zones to lure drivers to those areas. The "boost" paid to the driver will always be less than the "surge" charged to the rider.
     
    Ecosiuman likes this.
  4. lesh11

    lesh11 Well-Known Member

    Location:
    Colorado
    Driving:
    UberX
    Ok, that would be a bad change. We get boost zones here, but Uber pays the driver the larger of the boost, or the surge.
    They "loose" money if the boost is greater than the surge.
     
    Ecosiuman likes this.
  5. RideshareSpectrum

    RideshareSpectrum Well-Known Member

    Location:
    Bay Area
    Driving:
    UberX
    Boost is the replacement for Surge...basically they take the average surge rate in a geo fenced area for a specific hour... say 2.5x bet 5-6pm... and they offer Boost for the hour @ 1.8x to flood the area with drivers while they charge PAX 2.5-3x via Up Front pricing. The game is always charge as much as they can while paying out as little as possible.
     
    Ecosiuman likes this.

  6. UberMensch3000

    UberMensch3000 Active Member

    Location:
    SouthWestCt
    Driving:
    UberPREMIUM
    I'm finding this a bit difficult to believe. There would essentially be no reason at all to not pay drivers their share of the surge. No driver would race off TO the surge, which is the actual point OF the surge in the first place
     
  7. UberMensch3000

    UberMensch3000 Active Member

    Location:
    SouthWestCt
    Driving:
    UberPREMIUM
    I stopped giving a **** about surge once the pax in my area caught on and just started to cxl and wait it out. Now if I happen to get a surge ping I take my time getting to them because there's a better than 90% chance it's getting cxl'd before I get anywhere near them.
    *Also; Regarding Surge during boost, Uber has been and currently still is paying whichever is higher. At least they still are in my AO as of this past week
     
    uber_driver_in_la likes this.
  8. SpecialK8

    SpecialK8 Member

    Location:
    Columbus, Ohio
    Eventually, neither boost nor Surge will be in effect. Uber's going to ultimately wind up with a fully dynamic pricing model IMHO. It will always be based on time, location and duration and will be higher in areas of higher income, longer rides and bigger demand. They're already doing this in some markets (charging some passengers more with their estimated fare and not paying it out to the driver).

    The dynamic model is where they're going. It's good for drivers in the long run... provided they are transparent about it. Surge would be gone but you'll see higher rates in times of typical peak demand. So if you take a 6 PM rush hour ride you might make 80 percent higher fare even though there wouldn't actually be any surge.
     
  9. pomegranite112

    pomegranite112 Well-Known Member

    Location:
    Fairfax, VA
    Driving:
    UberX
    As a new driver i had the same rides. I felt like it was surging harder like a month ago though when i first started
     

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