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Surge 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
by asdasdsddd 2y ago
Surge 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.