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Uber is the solution to taxi drivers using dirty tricks (i.e taking the long way, turning the meter off), but also comes with it's own dirty tricks (surge prici

Uber is the solution to taxi drivers using dirty tricks (i.e taking the long way, turning the meter off), but also comes with it's own dirty tricks (surge pricing).

lotsofpulp 10y ago
I don't understand how charging market price is a "dirty trick". When the demand curve shifts, the price must also shift to meet the supply curve, otherwise you will create a condition where there is not enough supply. This concept applies to any perishable good, including seafood, hotel room nights, flights, concert/show prices...otherwise how should the limited resource be distributed? And how can production of the resource be stimulated if the prices don't shift to meet the supply curve?
- havetocharge 10y ago
  Sometimes what they charge you is not "market price" though. On my last trip my Uber driver took me via a huge curve and the charge ended up being ~ 40 dollars more than the projected value. I've filled out a form explaining the situation and most of the 40 dollars were immediately deducted from the fare on submission. I don't know whether the driver made a mistake or took me on a "trip" deliberately, but if I was in a normal taxi, I would either have to pay, or fight with the driver. Not defending the company culture, but the app does protect the consumer from some level of undesirable taxi driver behaviour.
waffle_ss 10y ago
I've never used Uber before, but I have taken ECON101 and if I understand it right, it makes sense to me. Keeping the price fixed below the supply/demand equilibrium point (a price ceiling) creates a shortage. By increasing the ride price, they incentivize more Uber drivers to come online (supply ramps up) and encourage riders who have the means to take other modes of travel or those don't urgently need a ride to skip it.
- jlebrech 10y ago
  they can increase the price to provide more coverage too, it's a smart system.
pluma 10y ago
> turning the meter off What's this meant to accomplish? I only noticed this once and the driver apologised when he noticed it after a few minutes and only charged me for the displayed fare. He also indicated he was worried a colleague might have seen it. As far as I can tell the only way this can be a dirty trick is by transporting passengers "off the records" but there's no way to guarantee a passenger will pay you whatever arbitrary fee you charge for that because it's unenforceable.
UK-AL 10y ago
I wouldn't call surge pricing a dirty trick, but fairly fundamental pricing mechanics. High demand = high prices = more incentive for drivers to come online to solve demand issues.

Uber is the solution to taxi drivers using dirty tricks (i.e taking the long way, turning the meter off), but also comes with it's own dirty tricks (surge pricing).

lotsofpulp 10y ago

I don't understand how charging market price is a "dirty trick". When the demand curve shifts, the price must also shift to meet the supply curve, otherwise you will create a condition where there is not enough supply. This concept applies to any perishable good, including seafood, hotel room nights, flights, concert/show prices...otherwise how should the limited resource be distributed? And how can production of the resource be stimulated if the prices don't shift to meet the supply curve?

havetocharge 10y ago
Sometimes what they charge you is not "market price" though. On my last trip my Uber driver took me via a huge curve and the charge ended up being ~ 40 dollars more than the projected value. I've filled out a form explaining the situation and most of the 40 dollars were immediately deducted from the fare on submission. I don't know whether the driver made a mistake or took me on a "trip" deliberately, but if I was in a normal taxi, I would either have to pay, or fight with the driver. Not defending the company culture, but the app does protect the consumer from some level of undesirable taxi driver behaviour.

waffle_ss 10y ago

I've never used Uber before, but I have taken ECON101 and if I understand it right, it makes sense to me. Keeping the price fixed below the supply/demand equilibrium point (a price ceiling) creates a shortage. By increasing the ride price, they incentivize more Uber drivers to come online (supply ramps up) and encourage riders who have the means to take other modes of travel or those don't urgently need a ride to skip it.

jlebrech 10y ago
they can increase the price to provide more coverage too, it's a smart system.

pluma 10y ago

> turning the meter off What's this meant to accomplish? I only noticed this once and the driver apologised when he noticed it after a few minutes and only charged me for the displayed fare. He also indicated he was worried a colleague might have seen it. As far as I can tell the only way this can be a dirty trick is by transporting passengers "off the records" but there's no way to guarantee a passenger will pay you whatever arbitrary fee you charge for that because it's unenforceable.

UK-AL 10y ago

I wouldn't call surge pricing a dirty trick, but fairly fundamental pricing mechanics. High demand = high prices = more incentive for drivers to come online to solve demand issues.