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Do you really think that its impossible that drivers could say, Hey, this time is a time that is likely to have surge pricing, so Im going to be ready to drive? The inelastic nature of the demand that you postulate helps nullify the short notice problem. And surely one effect of the using your own car aspect of Uber and Uber taking a percentage for trips instead of a fixed daily cost common in regular taxi services is that drivers are at least somewhat able to alter their behavior on shorter notice than in the taxi industry. In the non owner operator taxi model which is common in many cities it is impossible for drivers to work anything less than a full day, due to the fixed costs paid to the cab company to use the vehicle for the day. This may be not enough, but you seem to be overselling your point claiming that it doesnt increase supply at all. That makes sense. I drove a cab and the most unpleasant aspect was sitting around doing nothing mid mornings and mid afternoons sometimes for hours while the clock was running on the cab I had leased for a 8 or 12 hour shift.
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