Ride sharing service Uber was heavily criticized when it increased fares around New York City during Hurricane Sandy a few years back. But what does the company think about all this? Well, they call it surge pricing and say it was a necessary incentive to get drivers back on the road.
The move has been accepted ever since and many of its rivals are also doing it. But a high percentage of customers still think that doubling or even tripling fares during rush hours is not a good idea. They say regular taxis don’t do this, so why should they?
But Uber insists surge pricing is good for both sides. Jonathan Hall and Cory Kendrick, who work for Uber and recently did a study, say the company’s goal is to ensure its passengers that they can get a ride in just a few minutes.
The study, which was done along with Chris Nosko, a professor at the University of Chicago, tries to show why surge pricing is good for both sides. They tested this out by looking at the drivers available after a big concert in Madison Square Garden and New Year’s Eve.
For the concert, rides were available and done in time, but for New Year’s Eve, it was the total opposite. Drivers ignored the incentives and kept celebrating, causing the ride completion to drop dramatically for almost half an hour.
Kalanick also told Wired two years ago that estimated arrival time had increased, which means it takes customers longer to get a ride. But is that really bad? Yes, some customers get tired of waiting and abandon the service.
Do you agree with Uber?
Criticism From Nigel Farage
The ride sharing service was criticized just a few hours ago by Ukip leader Nigel Farage, who said Uber drivers play loud music, do not speak English and know nothing about London.
The Ukip leader did defend the growth of the ride sharing service and said it should not be banned from the country. That was the only good thing he had to say about it, he added that their service is significantly inferior to that offered by London’s black cabs, who have been in danger since the arrival of Uber. Farage believes its better quality service is worth paying for.
He also responded to Boris Johnson, who described London black cabs drivers as Luddites, a term used for those who fear technological changes.
Mr. Farage went on to say that his experience with Uber, which he believes has some wonderful drivers, have not gone well. In one of his rides, he said he was in a car that was playing loud music, with a driver that didn’t know English and didn’t know the area.
In his response to Boris, the Ukip leader said he should have mentioned that technology is welcomed and praised London black cabs for the quality service they’re providing.
Uber, which is rapidly expanding around the world, offers rides that can easily be ordered through their app. The service is operating in more than 60 countries and is still growing.