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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.
     
  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.
     
  5. RideshareSpectrum

    RideshareSpectrum Active 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.
     

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