Surge pricing, a controversial feature of ridehailing services like Uber and Lyft, may require reconsideration as autonomous vehicles, such as robotaxis from Waymo, expand. While surge pricing was designed to attract more drivers, its continued use with fully deployed driverless fleets raises questions about its relevance. Riders are left paying more for rides without any increase in available vehicles, which challenges the rationale for surge pricing. This pricing model, criticized by customers for unfairness, highlights the tension between profitability for companies and affordability for users, especially in the emerging era of autonomous transport.
Surge pricing, while initially justified for expanding driver pools, is less relevant for autonomous fleets, leading to higher costs with no increase in vehicle supply.
The original justification for surge pricing is challenged as robotaxi services deploy fully, making it unclear why higher fares are still implemented.
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