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Surge Pricing Impacts Ridehail

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demand trip market

Verge

Verge

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Technology

Technology

Surge pricing, the scourge of ridehailing, is evolving for the robotaxi era

Verge

Summary

Nutrition label

77% Informative

Surge pricing, the scourge of ridehail, is evolving for the robotaxi era.

Uber and Lyft executives say it helps them attract more drivers and reduce wait times.

But it raises an awkward question about robotaxis, which are expanding across the US , from San Jose , California , to Washington, DC .

Surge pricing can’t attract additional robotaxi vehicles, but it does suppress rider demand, thereby narrowing the gap between requested and available trips during peak times.

Those who can afford surge pricing will pay it; everyone else will have to find another way to travel.

Surge pricing creates winners and losers, particularly if it cannot expand vehicle supply to soften price hikes.

VR Score

70

Informative language

63

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52

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informal

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English

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56

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not offensive

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not hateful

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short-lived

External references

27

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