Nice analysis!
I think the effects and implications of surge go beyond UBER itself. For instance, in India, when a surge happens most of the UBER drivers tend to move away from the area. Primarily because the competitor's prices are way lower and people would just not call an UBER at all. In this case defeating the whole purpose of Surge.
Would be interesting to see other implications of Surge
Enter Captain Netflix! With the cable networks improving to compete with the online content providers (hulu, hboGo, etc), Streaming in-flight could be a Business Class feature.
"No problem is too small or too trivial if we can really do something about it."
This part tells us to keep solving whatever comes in our way. In today's world, most successful start-ups don't always succeed with their first idea, but rather an iteration of it.
Would be interesting to see other implications of Surge