Why Uber rides will be more expensive this festive season




Uber has sent out a statement which on close analysis reads like a veiled notice to all potential clients about the possibility of higher costs of fares during this festive season and as we approach the Christmas and New Year festivities.

In the statement, titled “Kenya – Uber: Riding over the Festive Season” sent out yesterday, Uber wrote that it “runs a successful model called dynamic pricing, which allows users to get a ride when they need it most – especially during the busiest nights of year, like New Year’s Eve or after a big sporting event.”

“As the party season kicks off, we are faced with the perennial challenge: how are we going to get home once the celebrations are over?…Although it is much easier to be responsible, many people still drive under the influence. We have covered the basics of getting around over the festive season, so you can always make the safe choice,” reads the statement.

However, in a bullet point – Know that you’ll get a driver, even in peak times – Uber says that “during times of peak demand, it is important that there are enough driver-partners on the platform to accommodate those looking for rides” before adding that “for this reason, Uber increases fares to encourage more drivers to come onto the platform.”

“Over festive periods, there is often a fear that there won’t be enough drivers to go around. As an ever-growing and evolving platform, this couldn’t be further from the truth. Uber runs a successful model called dynamic pricing, which allows users to get a ride when they need it most – especially during the busiest nights of year, like New Year’s Eve or after a big sporting event,” adds the statement.

The ride-hailing company explains that the dynamic pricing algorithm automatically increases prices to encourage more driver-partners to come onto the platform and cater for the demand.

“When demand and supply are in line, prices quickly return to normal. You will know when dynamic pricing is in place, because you will be notified from the moment you open the app, and reminded as you request your trip. Dynamic pricing ensures there are cars available whenever you open the app,” states Uber.

 




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