4 ms·

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 fi

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.

grobbles 11y ago
That's the whole reason they have surge pricing: to get more drivers out during those times to handle the load. As with all such systems, it is eminently gamed by the participants. Uber drivers intentionally stay offline in the driver app, wait until surge areas appear on the rider app, race to the surge area and the logs into the driver app. While it is responding to a "shortage", it's an entirely artificial shortage not unlike the Enron debacle in California. Consider the recent case of the guy in Edmonton with the one hour, $1100 ride. Would anyone seriously argue that only one driver was willing to provide such a ride for $1100? How about for $500? $250? (Add that Alberta current has a serious employment issue as well) Any arguments about supply/demand are rendering absurd by that simple example. (by default my posts are dead so this is for the edification of the showdead few)
tzs 11y ago
> 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?
- Grishnakh 11y ago
  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.
deleted 11y ago
[deleted]

4 ms·

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 fi

by Grishnakh 11y ago

grobbles 11y ago
That's the whole reason they have surge pricing: to get more drivers out during those times to handle the load. As with all such systems, it is eminently gamed by the participants. Uber drivers intentionally stay offline in the driver app, wait until surge areas appear on the rider app, race to the surge area and the logs into the driver app. While it is responding to a "shortage", it's an entirely artificial shortage not unlike the Enron debacle in California. Consider the recent case of the guy in Edmonton with the one hour, $1100 ride. Would anyone seriously argue that only one driver was willing to provide such a ride for $1100? How about for $500? $250? (Add that Alberta current has a serious employment issue as well) Any arguments about supply/demand are rendering absurd by that simple example. (by default my posts are dead so this is for the edification of the showdead few)
tzs 11y ago
> 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?
- Grishnakh 11y ago
  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.
deleted 11y ago
[deleted]