4 ms·

Uber NYC and the Surge: Right, Wrong, Lessons Learned

7 points by louhong 14y ago

URSpider94 14y ago
Well put. I'm sure that, at the end of the day, many NYC Uber customers were happy to pay more for the certainty of knowing that they would get where they wanted to go in the days after the storm. Isn't that what Uber is about in the first place? Nonetheless, our cultural norm in the US is strongly against "price gouging" during emergencies, which means, I suppose, that merchants should continue charging pre-disaster prices for gasoline, plywood, generators, and car service, and that the lucky customers who get there first get served, while the rest suffer. The author's suggestions on ways to thread this particular needle are why even lean start-ups need a good marketing lead.
- colmvp 14y ago
  I know I'm going to sound like a broken record but I really appreciate what Airbnb and some of their hosts did during this time. Airbnb waived transaction fees while some hosts (encouraged by the company itself) significantly dropped their rates so that people in areas affected by the Hurricane could find an affordable place to stay. Both the company and hosts could've easily taken advantage of the situation and jacked up their rates. But they didn't.
  - flyinRyan 14y ago
    They didn't do this out of the goodness of their own hearts (well, they might have but why would we assume that?). It's great PR. Just book the lost revenue under advertising expense. Not everyone can do that though, for some emergencies for you are emergencies for them too and raise their prices.
janezhu 14y ago
"Uber probably didn't have a "what to do in a human tragedy" playbook and instead ran their normal operating procedures." While this is true, it's surprising that they do not have a PR/customer service/support person that specifically keeps an eye out for incidents (or opportunities) like these. As much as their business is based on algorithms, it is run by humans, at least one of which who could have understood how the situation would appear to the average person. Especially when you see pure-PR stunts Uber is pushing like this: http://finance.yahoo.com/blogs/the-exchange/election-day-freebies-specials-191730893.html http://finance.yahoo.com/blogs/the-exchange/election-day-fre... "Uber: On Election Day, this car-service company will be offering customers a free ride to or from a national polling place, up to $20.12. Any amount above $20.12 will be charged, and the offer is only available during the city's voting hours." I can guarantee no matter how many kudos Uber gets for encouraging people to vote-- "The average person just heard that Uber was charging New Yorkers more" post-disaster.
- colmvp 14y ago
  Duracell gave free batteries and had recharge stations. Comcast had free wifi for both subscribers and non-subscribers in certain hotspots. NYTimes and WSJ had free access to their site for up-to-date information. Chase allowed people to recharge their devices at their ATMs (http://i2.cdn.turner.com/cnn/dam/assets/121031113932-sandy-charge-phones-story-top.jpg http://i2.cdn.turner.com/cnn/dam/assets/121031113932-sandy-c...). JP Morgan waived late fees for people within affected states. UHaul offered 30 days free storage for Sandy evacuees. Walmart donated truck loads of dry food, beverages, cleaning supplies, and board games. It's a very small cost in exchange for making a strong impact towards existing and new customers.

7 points by louhong 14y ago

Well put. I'm sure that, at the end of the day, many NYC Uber customers were happy to pay more for the certainty of knowing that they would get where they wanted to go in the days after the storm. Isn't that what Uber is about in the first place? Nonetheless, our cultural norm in the US is strongly against "price gouging" during emergencies, which means, I suppose, that merchants should continue charging pre-disaster prices for gasoline, plywood, generators, and car service, and that the lucky customers who get there first get served, while the rest suffer. The author's suggestions on ways to thread this particular needle are why even lean start-ups need a good marketing lead.

colmvp 14y ago
I know I'm going to sound like a broken record but I really appreciate what Airbnb and some of their hosts did during this time. Airbnb waived transaction fees while some hosts (encouraged by the company itself) significantly dropped their rates so that people in areas affected by the Hurricane could find an affordable place to stay. Both the company and hosts could've easily taken advantage of the situation and jacked up their rates. But they didn't.
- flyinRyan 14y ago
  They didn't do this out of the goodness of their own hearts (well, they might have but why would we assume that?). It's great PR. Just book the lost revenue under advertising expense. Not everyone can do that though, for some emergencies for you are emergencies for them too and raise their prices.

janezhu 14y ago

"Uber probably didn't have a "what to do in a human tragedy" playbook and instead ran their normal operating procedures." While this is true, it's surprising that they do not have a PR/customer service/support person that specifically keeps an eye out for incidents (or opportunities) like these. As much as their business is based on algorithms, it is run by humans, at least one of which who could have understood how the situation would appear to the average person. Especially when you see pure-PR stunts Uber is pushing like this: http://finance.yahoo.com/blogs/the-exchange/election-day-freebies-specials-191730893.html http://finance.yahoo.com/blogs/the-exchange/election-day-fre... "Uber: On Election Day, this car-service company will be offering customers a free ride to or from a national polling place, up to $20.12. Any amount above $20.12 will be charged, and the offer is only available during the city's voting hours." I can guarantee no matter how many kudos Uber gets for encouraging people to vote-- "The average person just heard that Uber was charging New Yorkers more" post-disaster.

colmvp 14y ago
Duracell gave free batteries and had recharge stations. Comcast had free wifi for both subscribers and non-subscribers in certain hotspots. NYTimes and WSJ had free access to their site for up-to-date information. Chase allowed people to recharge their devices at their ATMs (http://i2.cdn.turner.com/cnn/dam/assets/121031113932-sandy-charge-phones-story-top.jpg http://i2.cdn.turner.com/cnn/dam/assets/121031113932-sandy-c...). JP Morgan waived late fees for people within affected states. UHaul offered 30 days free storage for Sandy evacuees. Walmart donated truck loads of dry food, beverages, cleaning supplies, and board games. It's a very small cost in exchange for making a strong impact towards existing and new customers.