Today's Big Stories

Don't get caught off guard. Prepare your pockets for Uber's surge pricing on NYE

Internet ride-sharing app Uber has come under fire for its controversial surge pricing model, criticised for changing fares without notice.

With New Year’s Eve fast approaching, many will need a ride home and Uber's Alon Lits has opted to explain how the dynamic pricing concept works during peak travel times.

As demand increases, there's an algorithm working in the background. It's purely based on demand and supply at any given time.

Alon Lits, Uber General Manager for Sub-Saharan Africa

Listen to the full conversation from the Midday Report:

New Year's Eve sees peak demand and prices do increase at that point in time.

Alon Lits, Uber General Manager for Sub-Saharan Africa

Messages are also sent out to drivers at that time and as prices increase, more drivers are incentivised to operate.

Alon Lits, Uber General Manager for Sub-Saharan Africa

Users will be notified through the app that prices have been increased, there's no verbal communication.

Alon Lits, Uber General Manager for Sub-Saharan Africa

We'd rather be expensive and reliable.

Alon Lits, Uber General Manager for Sub-Saharan Africa

This article first appeared on 702 : Don't get caught off guard. Prepare your pockets for Uber's surge pricing on NYE


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