The case of Surge Pricing in Ride Sharing Services
Imagine yourself to be stranded in a city and you need to reach your destination as soon as possible. Imagine the city has no taxi or ride sharing service.
Will you pay for a ride home? Will you pay a premium for a ride home at this time?
Now, tighten your seat belt.
As much as we all hate to pay more, there were times when I was grateful to reach my destination in time.
Was missing my flight worth it? Can I put a price for getting back home early on a long day?
Of course, I do not have time constraints all the time. In those cases, I wait for surge to soothe. But, when I had to pay surge, I was grateful for existence of a service which enables me to reach in time.
At the time of skewed demand and supply, people who are in need get rides, others, can wait or look for alternative. A normal taxi fare varies from 1.1x to 2.5x times UberX/Lyft fare. So, when surge goes beyond the threshold, consider taking a taxi.
So, until price gouging laws are in place. Love it. Hate it. But, also be thankful about it.