How to Avoid a Jump in Prices for Uber and Lyft
If it’s raining heavily or traveling during rush hour, you can usually expect prohibitive prices when using popular travel apps like Uber or Lyft. If you don’t know how a price spike works, here is a short and short one: if there is a high demand for attractions, there is a surcharge on the attractions in a certain area in the form of a “spike” in tariffs.
Typically, you’ll get some sort of warning that notifies you in advance of this premium price. In the Uber app, you will see the indicated dollar amount before you confirm your trip (compared to the old 2x or 3x fare system). Meanwhile, Lyft is increasing the percentage of your ride with its Prime Time plan .
According to Uber’s website, the premium is designed to reduce demand, so fewer passengers decide to use the app altogether, and to “rebalance the market.” As a result, skyrocketing prices can mean that you will pay three or even four times more than you would otherwise. (Before Uber changed its pricing policy in 2018, Business Insider reported that Uber rides increased 50 times during an alleged “test” in Stockholm, Sweden in 2014.)
If you want to avoid a spike in prices and are in an area with affordable public transport, here’s a quick tip courtesy of Redditor u / bennetthaselton : When there is a spike in prices, take public transportation one stop away to get around the surcharge.
“I discovered this on the Sunday night after Thanksgiving (that is, during high demand),” they wrote. “An Uber ride from the airport to my house usually costs about $ 40, but that evening Uber showed me the price of $ 105. I took the light rail one stop from the airport (in the wrong direction from my house), updated Uber, and then it showed me the price of $ 40. “
And that’s good advice, especially if you’re at an airport or other high-demand location. Why? Well, if you get out of the designated spike zone (as Uber calls it), you can avoid the spike in prices altogether. (And if you are at the airport with no access to public transport, you might want to take the free shuttle to the nearest hotel and book a ride from there.)
“In some cases, even walking a block or two can get you out of the price spike zone,” writes u / shep_the_sheepdog of her experience. “There is a street full of bars and clubs that is very popular with college students, and since it’s just one street, it’s really crowded and crowded, so prices are skyrocketing. If you walk a couple of blocks from the congestion, it will drop significantly. “
There is one catch with this tip: if you are in an area with high demand, it will not be easy for you to avoid the price spike. As another Redditor points out, the best way to confirm this is to change your pickup location ahead of time to see if the rate changes.
And if that fails, just wait. As researchers at Northeastern University found in a 2015 study that simulated 43 riders looking for Uber in New York and San Francisco, prices are typically updated every five minutes based on a specific algorithm. This means that you can expect a different result from calling a car if you sit still and let the app recalculate your fare.