Higher Uber fares in the festive season due to high demand
Online taxi hailing company Uber says its services will cost more on certain days to lure more drivers onto the road during the festive season.
The company explained that the higher fares are driven by the demand for their rides during peak hours as well as to encourage more drivers to come onto the platform.
“During times of peak demand, it is important that there are enough driver-partners on the platform to accommodate those looking for rides. For this reason, Uber increases fares to encourage more drivers to come onto the platform,” Uber said in a statement.
To many who have been using the taxi hailing company have been accustomed to the company hiking prices during peak hours.
Surge pricing has long been Uber’s Achilles’ heel during periods of excessive demand, when there are more customers than drivers.
The dynamic pricing algorithm automatically increases prices during peak hours to encourage more driver-partners to come onto the platform. When demand and supply are in line, prices quickly return to normal.
