How surge pricing works Three computer scientists studying Uber’s surge pricing have devised a simple recommendation for thwarting the algorithm: Walk. The car-service app increases prices when demand for the service is higher than normal, ostensibly to attract more drivers to the area. In their study, the researchers at Northeastern University wrote a computer script that, in effect, created […]
To avoid Uber’s surge pricing, just wait 5 min A new study released by researchers at Northeastern University has attempted to pry open Uber’s mysterious “black box” and look specifically at how its controversial surge pricing model works. While the researchers say Uber’s surge pricing works as expected—based on supply and demand—they say their findings raise questions about its effectiveness for riders and its […]
The secrets of Uber’s mysterious surge pricing algorithm, revealed “Uber has all the information, and it’s making decisions about prices. Whether its interest is the same as the customers and the drivers isn’t something we know,” says Northeastern University researcher Christo Wilson. Wilson, who specializes in “auditing” algorithms, and two Northeastern colleagues set out to reverse engineer how Uber’s surge pricing works in two […]