The holiday season is one the most enjoyable times of the year. From parties with family and friends to shopping some of the best sales, there is so much to celebrate and so much places to go.
However, Uber users will pay an extra coin for each ride they get during this holiday season. In a statement released by Uber, the ride sharing App wrote that the increase in fares prices is to encourage more drivers to come onto the platform to cater for the high demand in the festive season..
The statement wrote that, Over festive periods, there is often a fear that there won’t be enough drivers to go around. As an ever-growing and evolving platform, this couldn’t be further from the truth. Uber runs a successful model called dynamic pricing, which allows users to get a ride when they need it most – especially during the busiest nights of year, like New Year’s Eve or after a big sporting event. For this reason, Uber increases fares to encourage more drivers to come onto the platform. The dynamic pricing algorithm automatically increases prices to encourage more driver-partners to come onto the platform and cater for the demand.
The price hailing company further explained that when demand and supply are in line, prices will quickly return to normal. Users will be notified when dynamic pricing is in place the moment they open the app, and reminded as they request a trip. Uber further wrote that dynamic pricing ensures there are cars available whenever users open the app.