HOUSTON – Ridesharing has become a monetary convenience and a major part of life for travelers since the launch of Uber and Lyft.
But if you’ve ever traveled on a bad weather day, rush hour or a big event, then you have probably experienced a price surge in ridesharing.
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Why is the cost of rideshare surging?
When there is a boatload of people requesting rides in the same area as you at the same time, there are just not enough drivers to assist everyone’s request. In these cases, prices increase to help ensure those in need of a ride can get one, according to Uber.
During the surge, Uber will give riders a heads-up through its app, giving them the option to either pay or wait a few minutes to see if the rates go back down.
The Uber app will show colored areas of a map, which will range from light orange to dark red. The light orange areas represent smaller earning opportunities from surge, while dark red areas indicate larger ones.
How prices are calculated
According to Uber, when prices are surging, a multiplier to standard rates, an additional surge amount, or an upfront fare including the surge amount will be shown on your offer card. This will vary depending on your city. Uber’s service fee percentage does not change during surge pricing.
Because rates are updated based on the demand in real-time, surge can change quickly. Surge pricing is also specific to different areas in a city, so some neighborhoods may have surge pricing at the same time that other neighborhoods do not, Uber stated on its website.
Several ways to beat surge pricing
According to The Penny Hoarder:
- Time your rideshare
- Download the Uber driver app
- Download the Lyft app
- Buy an Uber one-pass
- Use UberX share
- Try another rideshare app
- Taxi assistance: In Houston, the basic fee is $2.91, the kilometer price is $1.44. For standing and waiting time, $24.00 is charged per hour. These fees shall apply except every day between 8 p.m. and 6 a.m. During this time, the basic fee is $3.91 and the kilometer price is $1.44. Standing and waiting times then cost $24.00 per hour. Surcharges may apply. Click here for information.