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Writer's pictureJurek Martinez

And the Dynamic Rates?

Updated: May 8

And Uber's next step has already begun. Apparently Lyft has joined in. Dynamic Rates also known as Surge Price disappear more frequently.




Where are they? Do you see each other less frequently? Well yes. Dynamic pricing for years has been what has helped drivers generate slightly more income during high demand days. Without dynamic pricing, drivers' earnings are severely affected. Apparently, Uber is not worried about removing them in order to increase its income for the next closing in April 2024. (Every 4 months, companies make income closings for profit and loss reports)


There are 2 possibilities as to why this could be happening.


  1. Uber and Lyft are doing it to increase their income. How? Since there is high demand, and they eliminate the marks on the map, drivers do not receive extra amounts for high demand, but, however, Uber and Lyft are charging their passengers for the costs of high demands. This creates a big difference in what Uber and Lyft receive compared to what they offer drivers, benefiting the companies 100%.

  2. They increased the volume of drivers in large numbers in the market. This prevents Increased Rates from appearing, or applied higher markers to the system that triggers the Surge on the map. That is, if there were 100 trip requests in the area and only 60 drivers, the system began to increase customer rates and turn the map red to attract more drivers. Now, it could be that if there are 100 applications for the Increased Rate to start working, there must be 20 drivers in the area. If there are 50, 40, 30 it does not turn on. They simply start looking for drivers outside the area over long distances.


I'm going with option 1. Uber and Lyft continue to chase the money, regardless of the harm they may be causing to customers and drivers.

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