ride hailing platform

What is Uber Clone Surge Pricing?

Surge pricing introduces by Uber to meet the demand for taxis in certain areas and times. So when there is a high demand for taxis, then the fares would go up. This way riders can quickly get a ride and drivers get more money. The concept introduces to get more drivers on the road during peak hours. Uber clone surge pricing is usually a multiplier of X.X. The surge rate that is paid by the user depends on client surge factor. That is how big the customer demand in that particular area is. Most Uber-like apps, including the Lyft clone and the Careem clone, have the zonal surge factor feature integrated into it.

While there are many taxi companies in the world, not all of them are dependent on applications for their rides and for increased business. Using an app makes sure that you can observe the minutest factors that will make the business more successful.

Having a mobile application allows the app owner or the business owner to actually view what’s going on in the application. You get exact reports. Graphical representations that will help you understand what seems to be fit for business and what doesn’t.

Business strategies

Every business hinges on the success of the strategies. Every different kind of business has a unique approach to bring success. Understanding and studying existing patterns to make a complete idea of business requirements will allow you to prepare and create a new business strategy. Research in depth to understand demand supply patterns. Increased Demand for rides can be addressed in the best possible way by using increased pricing. This is what is referred to as the surge pricing phenomenon on the Uber clone app.

The increased demand for rides

There are times when there is an increasing demand for rides by customers in a certain area. The reason could simply be rush hours, unfavorable weather like rain or heavy snow, special events, and concerts or a bank holiday. During these times, it is quite possible that many customers are looking for a ride simultaneously in an area.

The increase in prices to cater to this demand

When the demand for drivers is more in such instances than the fares are increased so that more drivers are tempted to come and drive to meet the demand. This is what uber clone surge pricing is. Zones have drawn on a map and with a surge factor associated with each zone.

The surge pricing is basically a tool to ensure 2 main things:

  • If the profit margin is higher, more drivers are tempted to come to that region and take rides. Thereby bringing balance in the scales of demand and supply.
  • If the prices are pertaining to the demand people who are willing to pay more to get from one place to another can find a ride without a lot of effort.

Pay more or wait

As soon as surge pricing put into effect, riders get notification of the same on their apps. This way the riders have the choice to either wait for the fares to come down again.  As the number of waiting rider’s increases, the number of drivers on the road also increases to meet this demand until there are enough drivers to the road to meet the rider demand. Once many drivers as waiting for customers or trip requests, the surge factor remove and the original rates come into play.

Riders also have the option of choosing “notify me if the surge ends” and can wait till the fare drops.

How does the driver know what area is an increase in rider requests?

The area is broken down into different sections or zones. This area view on the driver app as follows when there is an increased demand:

  • Increased demand – yellow
  • Heavily increased demand – orange
  • The level that demands a surge to be triggered – red

The surge fare is usually a multiplier of 1.2 xs, 1.4X etc. So any rider requesting a ride in a red area will pay 1.2x the normal rate if the surge fare indicated as 1.2 xs.

Uber Clone Surge Pricing

Well, it can be said that surge pricing may be an inconvenience for the rider because they end up paying almost twice as much they would normally have to pay, but keeping these features are absolutely necessary. This is a way to keep your drivers interested in your app.

One has to understand that although the app’s source of income is from the customers, the backbone remains to be the force of the drivers. The more drivers you have the better are your chances of offering the services. Ensuring that your fleet is happy is the sure fire way to success.

If you want your app to have uber clone surge pricing feature, then make sure you inform this to your developer when you get your app designed by them.