5 ms·

And it only works as long as all of the drivers in an area agree: one or two drivers who don't join the scheme, and it doesn't work.

metalliqaz 7y ago
Not all. The large majority, but not all. There are very likely one or two drivers in the area that don't participate, simply because they aren't in the parking lot at the moment they orchestrate the mass logout. Surge pricing is about supply and demand, so if expected demand is high (like at an airport) they need a lot more than one or two drivers.
- mikeash 7y ago
  I don’t think it even necessarily needs to be a large majority. It just needs to be enough such that the remaining drivers aren’t sufficient to meet demand. Depending on circumstances, that could require anywhere from one driver to all of them. It’s a great illustration of how supply and demand work to determine prices.
  - metalliqaz 7y ago
    Yeah, agreed, but these guys are going for maximum rate, so they have to get as many as possible.
    - mikeash 7y ago
      Indeed. And as the rate grows higher, there’s ever more incentive to defect from the scheme. This should be a case study taught in Economics 101, it’s so pure and clear!
      - kevin_b_er 7y ago
        Well, yes. It will settle at the rate they're actually willing to be paid, not the one their "employer" is setting for them.
- duxup 7y ago
  Maybe not all, but I wouldn't be surpised to see someone "not participating" txting a buddy "prices up". Someone has to check it to make sure it is working.
  - netsharc 7y ago
    Couldn't they check using the passenger app?
    - duxup 7y ago
      I the rate that the passenger sees always the rate that the driver is paid? If so then yeah, but I'm not sure they're always 1:1.
      - eropple 7y ago
        It used to be almost exactly proportional. Lyft and Uber have been progressively trying to disconnect the two values, though; these days it's probably not possible to tell.
ardy42 7y ago
> And it only works as long as all of the drivers in an area agree: one or two drivers who don't join the scheme, and it doesn't work. That's much easier to organize at an airport than elsewhere, since all the drivers are required to gather together in an airport waiting area.
asdff 7y ago
If one or two drivers pick up the fair before the surge they are good for 15+ minutes of being not at the airport driving someone someplace, then the surge can just happen then after they leave.

metalliqaz 7y ago

Not all. The large majority, but not all. There are very likely one or two drivers in the area that don't participate, simply because they aren't in the parking lot at the moment they orchestrate the mass logout. Surge pricing is about supply and demand, so if expected demand is high (like at an airport) they need a lot more than one or two drivers.

mikeash 7y ago
I don’t think it even necessarily needs to be a large majority. It just needs to be enough such that the remaining drivers aren’t sufficient to meet demand. Depending on circumstances, that could require anywhere from one driver to all of them. It’s a great illustration of how supply and demand work to determine prices.
- metalliqaz 7y ago
  Yeah, agreed, but these guys are going for maximum rate, so they have to get as many as possible.
  - mikeash 7y ago
    Indeed. And as the rate grows higher, there’s ever more incentive to defect from the scheme. This should be a case study taught in Economics 101, it’s so pure and clear!
    - kevin_b_er 7y ago
      Well, yes. It will settle at the rate they're actually willing to be paid, not the one their "employer" is setting for them.
duxup 7y ago
Maybe not all, but I wouldn't be surpised to see someone "not participating" txting a buddy "prices up". Someone has to check it to make sure it is working.
- netsharc 7y ago
  Couldn't they check using the passenger app?
  - duxup 7y ago
    I the rate that the passenger sees always the rate that the driver is paid? If so then yeah, but I'm not sure they're always 1:1.
    - eropple 7y ago
      It used to be almost exactly proportional. Lyft and Uber have been progressively trying to disconnect the two values, though; these days it's probably not possible to tell.

ardy42 7y ago

> And it only works as long as all of the drivers in an area agree: one or two drivers who don't join the scheme, and it doesn't work. That's much easier to organize at an airport than elsewhere, since all the drivers are required to gather together in an airport waiting area.

asdff 7y ago

If one or two drivers pick up the fair before the surge they are good for 15+ minutes of being not at the airport driving someone someplace, then the surge can just happen then after they leave.