4 ms·
The question in my mind is whether uber is taking any risk in that arbitrage, if uber is essentially selling me "the rider" a swap (floating for fixed) it doesn
by rbcgerard 10y ago
The question in my mind is whether uber is taking any risk in that arbitrage, if uber is essentially selling me "the rider" a swap (floating for fixed) it doesn't seem unreasonable they should be compensated for taking that risk
- dnautics 10y agothey are. If something unexpected comes up (say a high volume of traffic due to a sudden accident), then uber will have to pay the driver the higher amount.
- rbcgerard 10y agoYeah - it doesn't seem unfair to get compensated for that risk
- acjohnson55 10y agoTerminology question: wouldn't arbitrage imply absence of risk?
- rbcgerard 10y agoIf you're an academic, probably. Otherwise, almost never...
- acjohnson55 10y agoI've always kind of wondered that, because I see the word thrown around so freely as a fancy word for "opportunity", yet its textbook definition seemed a bit more nuanced.