"Uber has a few luxuries that taxis are not afforded (due to regulation), including significant surge pricing and the general ability to turn down fares. To com

"Uber has a few luxuries that taxis are not afforded (due to regulation), including significant surge pricing and the general ability to turn down fares. To compare, Uber is allowed to charge 3x the normal price during peak hours, whereas NYC cabs have a fixed 50 cent surcharge at night and $1 during evening commuting hours." Do you know what that is called in economics? Here you go: http://en.wikipedia.org/wiki/Price_ceiling http://en.wikipedia.org/wiki/Price_ceiling It's a specific type of price-control, and it's the reason you have a shortage of taxis during peak-hours. The fact that pricing can "surge" in Uber during peak hours is a feature! It links in to what the other poster told you, that some Uber drivers like the flexibility of being able to clock in/out whenever they please. Increasing the price at peak hours means that there is more incentive for them to clock in, and thus eliminate the shortage. Sure, there will be abuse, like you mentioned. But that's trivial to solve without having to resort to out-right banning Uber, as per one of the other responder to your comment.