Price Surging by Uber (Essay Sample)

Student name
Professor
Course
Date
Price Surging by Uber
Uber, according to economists, exploits the consumer surplus concept using surge pricing. In surge pricing, the uber rides are significantly increased by several points to meet the demand; in this case, fewer drivers but more customers. Increasing the prices of Uber rides does not balance the need and supply dynamic but instead exploits consumers due to the changes in the environment. For instance, if there is a storm and demand for uber rides increases, consumers are willing to pay a specific price for the ride but nothing extra. The regression utility of the Uber ride also ignores the preferences and tastes of the consumers when it comes to Uber rides (Harry Huggins, 00:23:12). When the pricing is too high to pay for, they might opt for a taxi or walk in the rain to save their money. This can prove difficult for the uber driver wanting the consumers to pay for the right price while assuming the storm to be a factor to surge the prices. However, surge pricing can balance the demand for rides if more drivers are attracted to the specific location. The excess supply of customers can then be