Capital News Service analyzed Uber pricing data to see how often the surge multiplier spikes in five Washington, D.C. neighborhoods — and how riders can avoid the higher fees.

by JENNY HOTTLE and CHRISTINE RICE
Capital News Service

Uber has a novel way of deciding how to charge users for rides. The private rideshare service says it uses an algorithm based on classic supply and demand: When demand for cars goes up, prices go up to decrease demand and to encourage more drivers to get on the road, increasing supply.

On Saturday nights and early Sunday morning in Adams Morgan, for example, fares surge as people look for a ride home from bars. When surge pricing is in effect, fares in the Washington, D.C., neighborhood cost 1.5, 2 or even 2.5 times the normal price.

An analysis of Uber pricing data, which became publicly available in August, reveals a key characteristic of the surge multiplier: While prices can rise very high, they won’t necessarily stay that way for long.

A company spokesperson declined to comment on the record about the company's pricing system. Uber's website says that its rates increase to get more drivers on the road and to "ensure reliability during the busiest times."

Capital News Service selected five neighborhoods in Washington, D.C. and analyzed the fluctuations in the surge multiplier over the course of a week and in a single day based on data collected from Uber’s API.

The graphs show that when prices are surging, there’s no need to immediately run to the nearest Metro station or hail a city cab instead. Waiting just five extra minutes — sometimes even less than that — to request an Uber car could make all the difference in how much a ride costs.