The downside to that, which I've read many people complain about, is that during those peak times, you simply can't get a cab. With a constrained supply and fixed pricing, demand outstrips supply and then you may or may not be lucky enough to get a ride. That's the whole reason they have surge pricing: to get more drivers out during those times to handle the load. Cab drivers have little incentive to bother driving during peak hours since they get paid the same.

> Cab drivers have little incentive to bother driving during peak hours since they get paid the same.

Won't a cab driver make more during peak hours because he will have less down time between fares?

Marginally maybe, but when there's already a shortage of drivers for the demand, it's not like he's sitting around waiting for a fare most of the time anyway.

In Tokyo, taxis all suddenly become way more expensive after last train.

for better or for worse, that's pure capitalism right there. as demand goes up, either supply will go up or price will.

Same anywhere I've lived in the UK. After a certain time and on special occasions fares are 1.5x.

Speaking from personal experience: no they do not.