We see too many examples of surge pricing done poorly, with companies raising prices during peak times. Finally, there is an example of it done well in a post from The Week.
The ONLY difference: they are lowering prices during off-peak hours rather than raising pricing during peak. Notice the tone of the article is complementary. Other companies are watching to see if it works.
If you have surges in demand and want to price based on time, start by reducing prices for off-peak hours.Later you can raise all prices at the same time, which will seem more fair.