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How Uber Uses Surge Pricing to Balance Supply and Demand
In this episode of Pricing Power Podcast, Lucas and Luna dissect Uber's surge pricing model. They explore how dynamic multipliers are set algorithmically to match rider demand with driver supply in real time. The discussion covers the controversial 2014 price spike during a Sydney hostage crisis, the role of heat maps and base fare structures, and how Uber later refined surge transparency with upfront pricing. Learn why surge pricing isn't just about making more money—it's a mechanism to incentivise drivers to move to high-demand areas. Specific details include how multipliers…
The skinny
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