UX problems aside, the surge pricing idea is creates fascinating window into the true perceived value of the service. To give an example, Uber would normally be ~$35 from the party I was at last night in SF's Mission to my home.
With a 6.25x multiplier in place it would have been just under $220. There is just NO WAY I'd spend that to go 2 miles to get home. But obviously some people were prepared to, and that must be golden information for Uber in terms of future pricing planning.
I also wonder whether that could be used in other pricing scenarios, such as SaaS, where if some level of (artificial/real) scarcity could be put in place you could see how much people are really prepared to pay for your service.
With a 6.25x multiplier in place it would have been just under $220. There is just NO WAY I'd spend that to go 2 miles to get home. But obviously some people were prepared to, and that must be golden information for Uber in terms of future pricing planning.
I also wonder whether that could be used in other pricing scenarios, such as SaaS, where if some level of (artificial/real) scarcity could be put in place you could see how much people are really prepared to pay for your service.