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People like the knowledge that they are not being ripped off by the person they are interacting with. On Uber you are essentially guaranteed that you are paying
by augment_me 1mo ago
People like the knowledge that they are not being ripped off by the person they are interacting with. On Uber you are essentially guaranteed that you are paying the absolute max that you would accept algorithmically, and the driver is getting the absolute least they would accept to drive for. If the balance shifts in any way, someone is ripping off the person they will interact with.
Since the customer knows less about how much things should cost, they are more likely to be ripped off. People pay a 30% premium to ensure that they dont feel ripped off alone.
- rolandog 1mo agoThat means Uber is screwing the driver and customer the algorithmically maximum amount. It should be less, and it should be in the driver's favor. They should be able to afford a decent living.
- augment_me 1mo agoWell not really, if they were screwing people to the maximum people would be ordering cabs instead, the goal is to screw them for the maximal amount that they feel like they can to accept in the market that exists. Cabs might still screw you for more which is out of your control, so you don't take them.
- tristanj 1mo agoWhile I agree, Uber's cut has reached predatory levels. They take 50% of the fare in some markets. They're significantly overcharging riders and underpaying drivers. https://len-sherman.medium.com/ubers-long-and-winding-road-to-50-take-rates-1aaf4a574ae0 https://len-sherman.medium.com/ubers-long-and-winding-road-t...
- augment_me 1mo agoThat's the whole goal with the pricing model. Its not predatory because the customer is still paying for it. There is a choice to not pay and use a different service. If there are reasons to not do so, we are not at the predatory levels yet.