4 ms·

I don't like to put words in other people's minds, or thoughts in their heads, but I would hazard to guess that Uber has set prices for the sake of stability, a

by nickff 10y ago

I don't like to put words in other people's minds, or thoughts in their heads, but I would hazard to guess that Uber has set prices for the sake of stability, and to give the users (drivers and passengers) some expectation of what fares might look like on a 'normal' day. It may be that as more users join the platform, it could be transitioned to a bid/ask model. A bid/ask model may lead to more efficient pricing, but could increase transaction costs and lead to a less efficient overall market. I do not know whether this is the case, and it would be difficult to test, though Uber and Lyft are in a very good position to test.

pdkl95 10y ago
> Uber has set prices for the sake of stability Uber forces price instability with "Surge Pricing".
return0 10y ago
Couldn't each driver just propose a fare and let the customer accept it?
- nickff 10y ago
  Yes, that would be an ask-only model. The issue there would be that the customers would have to select from a list, where the list composition was constantly changing (in busy areas). People might also be hesitant to user an app if they have no idea what it will cost. These issues would probably be solvable or solved, as I'm sure prices would stabilize in busy markets, and people would probably be willing to accept any price under $X; transaction costs would still be higher than with the current Uber/Lyft model.
  - return0 10y ago
    I really dont think it would be a big bother. Most of the time the drivers would accept Uber's proposed price, and i really see no big issue with selecting a driver/fare from a list. IT would also create a entire market for "uber fare optimization".
    - EdHominem 10y ago
      An open market should also exist, but for branded products I'd prefer consistency over slight potential savings. That's the difference between Uber and craigslist.
gaius 10y ago
It won't tho' - you'll end up with the wedding photographer model - where new entrants operate at a loss to build a portfolio, then when they want to start charging the established rate, they are in turn undercut by new entrants. It's a brutal market, and a race to the bottom.

by nickff 10y ago

pdkl95 10y ago

> Uber has set prices for the sake of stability Uber forces price instability with "Surge Pricing".

return0 10y ago

Couldn't each driver just propose a fare and let the customer accept it?

nickff 10y ago
Yes, that would be an ask-only model. The issue there would be that the customers would have to select from a list, where the list composition was constantly changing (in busy areas). People might also be hesitant to user an app if they have no idea what it will cost. These issues would probably be solvable or solved, as I'm sure prices would stabilize in busy markets, and people would probably be willing to accept any price under $X; transaction costs would still be higher than with the current Uber/Lyft model.
- return0 10y ago
  I really dont think it would be a big bother. Most of the time the drivers would accept Uber's proposed price, and i really see no big issue with selecting a driver/fare from a list. IT would also create a entire market for "uber fare optimization".
  - EdHominem 10y ago
    An open market should also exist, but for branded products I'd prefer consistency over slight potential savings. That's the difference between Uber and craigslist.

gaius 10y ago

It won't tho' - you'll end up with the wedding photographer model - where new entrants operate at a loss to build a portfolio, then when they want to start charging the established rate, they are in turn undercut by new entrants. It's a brutal market, and a race to the bottom.