By Christopher Elliott
Jillian D, normally pays $42 for an Uber ride home. So why does it now cost $127? Is Uber ripping her off?
Q: I recently called an Uber for a ride home. Usually, it costs $42, but Uber charged me $127. How can they triple the cost?
This is a rip-off. I’ve always paid $42, give or take a few dollars. Can you explain why I was charged two different prices for the same amount of miles? — Jillian D., Lakeland, Fla.
A: That sounds like a rip-off to me, too. But is it? Charging extra based on demand is called “surge” pricing. In cases of “very high” demand, Uber says <a href=”https://www.uber.com/us/en/drive/driver-app/how-surge-works/”>prices may increase</a> to help ensure that those who need a ride can get one. According to the rideshare service, surge pricing lets the Uber app “continue to be a reliable choice.”
But it does so much more than that. This type of dynamic pricing may also be the future of rideshare services such as Uber and Lyft. As demand for rides increases, so do prices. That’s one reason why Uber is valued at $100 billion.
You can avoid surge pricing (or “prime time” pricing on Lyft) with a few easy tricks. The app normally alerts you to the price increase. If surge pricing applies in your city when demand increases in a specific area, that neighborhood will change color, according to Uber. The colored areas of the map will range from light orange to dark red. Light orange areas represent smaller earning opportunities from surge, while dark red areas indicate larger ones, the company says.
You can wait a while until demand goes down and then try again. Another popular trick: Move. If you walk or take public transportation to another part of town, you may be able to avoid surge pricing and your rates will return to normal.
Some areas are more prone to this type of pricing. A busy city center or a conference hotel at the end of a big event might be susceptible to higher fares. An area with less demand, like a quiet suburb, might never experience surge pricing.
Remember, you always have choices. If Uber is giving you a $127 rate, you can always download Lyft and try it. And if Lyft goes all prime time on you, you can switch back to Uber. Don’t forget taxis (yes, they still exist) and mass transit. But the bottom line is: You have options. You should never feel that accepting an inflated price quote is your only choice.
If you feel you’ve been overcharged, you can also reach out to <a href=”https://www.elliott.org/company-contacts/uber/”>one of these Uber customer service managers</a>. I list their names, numbers and email addresses on my consumer advocacy site, Elliott.org.
Christopher Elliott is the chief advocacy officer for Elliott Advocacy. Email him at chris@elliott.org or get help with any consumer problem by contacting him at http://www.elliott.org/help
© 2021 Christopher Elliott.
