This is a really exciting video because I want to teach you what SURGE and Prime Time is. Surge and Prime Time are the same things using different names. Prime Time is what Lyft calls it. SURGE and Prime Time, just to explain real quick, is basic supply and demand.
When there are more apps that are open, either requesting or just even looking at requesting, than there are drivers in the area, algorithms will push up the price, which is created to cause drivers to either turn on their apps or migrate over to that direction so that they can meet the demand.
Now, this is something that people often hate about Uber and Lyft because they will get sometimes really, really hefty fines. But the alternative is that no one comes, and you’ll get the dreaded “No Drivers Available” sign.
So this is what it looks like for Lyft. Now, Lyft makes the city into little blocks. And so right now, right here, right above Mill City in Minneapolis, in the heart of Minneapolis, there’s a lot of demand.
And if you look at the top of the screen, it says, “25% to 100% more.” Now, Lyft has percentages. Uber does multipliers. Okay?
Just keep in mind, so a 100% is what Uber would say, “2x Surges.” And 300% would be “4x Surge.” Okay? The darker the color, the higher the fare.
Now, not all Lyft apps, they’re testing this out, show the actual percentages. This square, this large blue square here that you see in Uptown, 10% up here in Minneapolis 10%, this is called a prime zone, which means this is a designated place.
Until 6:00 p.m., every ride made in that time is going to have an additional 10%. Okay? This is a special thing that Uber and Lyft both do. And Lyft has, at least in Minneapolis, consistently been doing it. Okay?
So that’s how it looks for Lyft. And, look, University of Minnesota area, Dinkytown, that has some SURGE too. Now, later on in other videos and my other advanced courses, I’ll teach you how to use other apps like Prime Time.
And this Prime Time app is tracking all these areas. It’s showing right now that there is aSURGE, 75% Target Field, 50% Dinkytown. And this is something I’ll show you guys in another video.
Now, let’s look at Uber. Uber is a little different. Uber has things just like Lyft. The darker it is, the more [of a] SURGE it is. So you can see this little scale. Don’t be deceived by the three.
The three, it could be 30. I mean, it never has it been 30, but there is no cap to search. Search is just all automatic with a computer. And so, right here, if you notice, it doesn’t…Uber has a large, way, way larger swab of search.
They don’t do it in small little bite size. So if you have a lot of demand to one area, let’s say right here, Boom Island, it will trigger search over here.
Now, the cool thing about Uber is that if you go scrolling close, you can actually see the specific percentages. So 1.4x would be a $1.40 a mile from Minneapolis instead of a normal dollar. And also you’re multiplying the, also, waiting time.
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Notice that it is only 1.4 while Lyft in many places is a lot higher. Let’s go to the Prime Time app to show you. So 75% would be $1.75. And if you look at the Uber app, there is not one area right now that’s $1.75.
And so that’s very cool. So keep in mind, and then we will talk about this in other advanced courses, keep in mind going back and forth to the apps which one has the betterSURGE that will give you the best bang for your buck.
Also, notice, there is no prime zone here. There is no boost. Uber calls it Boost. There is no boost here. And if you want to see a boost, you go to Earnings [then] Promotions.
If you noticed the zero, I haven’t worked this week. Promotions, and under promotions they will show you if there’s any boost. And there are no boosts right now. Okay?
So that is a basic crash course on how SURGE and in future courses, the more advanced ones, I’ll teach you how to maximize surge. But knowing this is helpful enough.
And the final tip I’ll give you, and this is a freebie is that if you were… Oh, look, it just changed. This is part of my tip. Great example, great, great segue.
You see how it just changed? SURGE and Prime Time change every couple of minutes. And so basically, that’s why it’s so important never to chaseSURGE.
So let’s say that all over the way over here in Minnehaha Regional Park. Let’s just say you’re there or you’re at the airport. Like, “Oh, snap. Downtown is surging.”
Well, it will probably take you 20 minutes to get Downtown from there and by then, it will be completely different. It may be more. It may be nothing.
And so you never want to chase SURGE pricing. You want to anticipateSURGE. You want to know where to be at the right time. So you only chase SURGE if you’re only just like a few blocks away.
Other than that, you’re going to be wasting money because all the other drivers who aren’t thinking and aren’t smart about the way they’re driving, they’re going to be all gravitating towards there, and they’re going to do the same thing.
And, you know, in fact, I’ll just show you real quick. I’m going to open the Lyft app. And I’m going to show you the people. Well, this is all extra stuff.
This is all stuff that I’ll show you in the advanced course. And sometimes, I can even… See this car is moving? He’s trying to get to the hot action over there.
And if you keep looking around, and if I wanted to spend the time, you literally see cars driving over to that direction. You can track them.
This is often really clear to see if you look at the airport. So here’s Minneapolis Airport. If there’s SURGE going on here, you’ll see all these people on the highway on 62 and over here just driving [and] trying to get there.
And so it’s really, really comical. So don’t be that person. Don’t chase SURGE. Anticipate surge. Hopefully, this is helpful.
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