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There are many people who believe vigorously in dynamic pricing and it providing the "best service", and don't need to be paid to believe so. The difficulty ar
by rtpg 2y ago
There are many people who believe vigorously in dynamic pricing and it providing the "best service", and don't need to be paid to believe so.
The difficulty arises because the counter-argument of "surge pricing can kick in way faster than new cars show up on the road" is, in its details, subtle. And "this is just grabbing money for no increased service" goes against many people's idea that people should be able to charge arbitrary amounts for services if they feel like it. "People shouldn't be bidding against each other like this for transportation" is yet another can of worms.
This is a space where there are so many sticking points that many people will disagree with. A place where you can really understand gaps between people's axioms, depending on what part you focus on. And it's a place where Uber sits comfortably in the conclusion of the simple arguments, and the opposition to its tactics lies in the conclusion of very long, nuanced, contextful arguments (that still, at one point, require acknowledging that it's not good for society as a whole for a service provider to have unlimited pricing power, which is a big ask!).
- asdasdsddd 2y agoSurge pricing is literally just supply and demand. It tries to ensure the number of people who need a taxi is the same as the number of people who drive. A glut in drivers decreases driver earnings while a glut in riders will cause long wait times.
- yunwal 2y ago> It tries to ensure the number of people who need a taxi is the same as the number of people who drive This is almost certainly not what it does. What it (almost certainly) does is maximize Uber’s profits. Meaning if they can make a few extra bucks by raising prices and leaving someone out in the cold and a driver without a job they will. This is not to say that Uber has any obligation to do anything different, just a reminder that profit maximization is not the same as welfare maximization.