https://www.vice.com/en_us/article/d3adbv/this-case-will-decide-if-ubers-surge-pricing-is-illegal

Next month, a company-appointed arbitrator will hear arguments on whether surge pricing is in violation of antitrust law. The results of the trial could make or break Uber’s already-unsustainable business model.

Surge pricing is a core feature of Uber that ostensibly lets an algorithm optimize peak demand periods. Uber claims surge pricing increases driver supply, but researchers say the feature serves to redistribute existing supply while pricing out some customers and prolonging driver shifts. As with virtually all of the algorithms that tightly manage Uber’s drivers, surge pricing is a black box. While Uber has changed the feature multiple times over the years, it still seems to negatively impact drivers and passengers. If surge pricing is found to be illegal, Uber could lose its ability to control the pricing of rides, the distribution of driver supply, and the consumption patterns of riders.