Beware of Uber price surge

UBER is one of the most popular taxi firms in Newcastle – but how does the app’s surge pricing work?

Regular users of the service may be familiar with the price changes that can be implemented at peak times on certain days.

But when do these price surges come into effect, and why do Uber drivers hike their fares?

According to the Uber website, surges are introduced when the level of demand is so high there isn’t enough drivers on the road.

The firm indicates bad weather, rush hour, and special events as examples of when price surging comes into effect.

Explaining their reasoning behind the surges, the website reads: “In these cases of very high demand, fares may increase to help ensure those who need a ride can get one.

“This system is called surge pricing, and it lets us continue to be a reliable choice.

“Whenever we raise rates due to surge pricing, we let riders know in the app.

“Some riders will choose to pay, while some will choose to wait a few minutes to see if the rates go back down to normal.”

Uber users will be able to see when a price surge is in effect through the app, which is subject to change in real-time.

Rates such as 1.6x or 1.8x will be displayed, and these can fluctuate between different areas of the city.