The thing is the alternative to the "gouging" isn't "lower priced rides for everyone", it's "most people can't get a hold of a cab no matter how badly they want

The thing is the alternative to the "gouging" isn't "lower priced rides for everyone", it's "most people can't get a hold of a cab no matter how badly they want one". The "gouging" has three big effects: (1) More drivers willing to deal with the weather for the increased pay, so more people can get out of the storm; (2) A (highly imperfect) way to prioritize the people who most want/need the service. A person who really, really, really needs to move quickly has a way to credibly express that preference over someone who would kind of like an Uber, but could do without - by being willing to pay the higher rate. (3), or course, is more money for Uber. (1) and (2) are very good things, and I'm indifferent to (3). "Gouging" is generally only a thing when there's a monopoly, which Uber doesn't have on transportation. People can look up Uber rates and decide if it's still worth it to them to go Uber or take something else. (See http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/20/ubers-surge-pricing-is-totally-logical-and-fair-so-why-do-people-hate-it-so-much/ http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/20/u...)