When the snow started falling in New York City this past weekend, the prices for a ride in an Uber car began rising. It’s part of the company’s long-standing policy of “surge pricing”: using an algorithm that raises prices to adjust for demand. Uber says the higher prices motivate more drivers to hit the road, ensuring that there are always enough cars available for customers, at least those who can afford much steeper fares. The adjusted prices, which got as high as $35 a mile, were roughly eight times the regular fare. The minimum of $175 a ride took many customers by surprise and they reacted with anger. Surge pricing happens regularly in Uber’s busiest markets, and has drawn customer outrage and media scrutiny before, including in New York during the snowstorm on New Year’s Eve, 2011, and during Hurricane Sandy.
See also → ValleyWag: The Weekend Uber Tried To Rip Everyone Off
→ The Walking Bostonian: Thought experiment: how much bus service can you get for the price of a parking garage?
We know that excavating an underground parking garage can cost from $50,000 to $100,000 per parking space (sometimes more, sometimes less, depending on conditions). Speaking loosely, then, each underground parking space could cover the net cost of approximately 5-10 weekdays worth of key bus route service. Let’s just assume for simplicity that every day has the same cost as a weekday. Then a year’s worth of key bus route service could be covered for the same cost as 36 to 73 underground parking spaces.