10 ms·
This story really highlights just how far the media witch hunt against Uber has gone. The story basically calls out Uber for its surge pricing strategy which ki
by DigitalSea 12y ago
This story really highlights just how far the media witch hunt against Uber has gone. The story basically calls out Uber for its surge pricing strategy which kicked in during a siege in a Sydney, Australia cafe. People in the area were clearing out and catching Uber's. Because of the increased demand, Uber's automatic surge pricing kicked in.
This story makes it sound like Uber deliberately turned on surge pricing to capitalise on what was going on, which is not the case. Those who have used Uber before know this is an automatic mechanism, simple supply and demand, which in most cases makes sense. It is just unfortunate that this happened when this hostage crisis was taking place.
Surge pricing is and always has been an automatic thing. It isn't something that someone in an Uber office switches on when they notice an increase in demand or a crisis going on they can take advantage of. Uber are a pretty questionable company who have done some rather questionable things, in this situation, Uber did everything right (for the most part).
While I understand the fear is real from some of the people fleeing, the people actually being held captive in cafe were the ones we should be focusing on, not the people fleeing who were safe surrounded by. Calling an Uber in a crisis is the last thing I would honestly be doing, I would be calling an actual taxi because I know there are more taxis than Uber's in Sydney.
As unfortunate as it might be, the system works for the most part. Obviously there were a lack of vehicles in the vicinity of the siege, the system realised this and compensated by increasing the cost. The alternative in this situation if there was no surge pricing, there would be no additional vehicles to meet the demand which means people have no transport. It is also worth noting the drivers get paid more when surge pricing is in effect, the incentive of more money brings drivers from further away into the area.
And you know what, once Uber found out what was happening, they made all rides in the Sydney area free which they didn't have to do. Does this sound the like an action of a company trying to capitalise on a crisis? I don't think so. If Uber didn't reverse surge pricing in the area, then yes, I would be calling them out like everyone else, but as soon as they noticed, they made all rides free and offered refunds to anyone charged surge prices. Anything for a story, right?
I think Uber could have handled the PR around this so much better, especially keeping the public in the loop around complexities (if any) of turning off surge pricing or making rides free. I think this also highlights Uber need to consider pricing caps on surge pricing, a 4x increase is just ridiculous crisis or no crisis. I have heard of some parts of the US which have hit a 6x increase before and then Uber intervenes and caps it.
A fine piece of shoddy journalism. Shame on you Washington Post and every other media outlet making this into a far bigger issue than it actually is.
- cjoh 12y agoThis wasn't an "automatic price increase" unless software got really good at explaining why they were increasing prices. http://cl.ly/image/2U3l242l350p/Image%202014-12-15%20at%2012.41.06%20PM.png http://cl.ly/image/2U3l242l350p/Image%202014-12-15%20at%2012... "We are all concerned with events in CBD. Fares have increased to encourage more drivers to come online & pick up passengers in the area." Somebody wrote that sentence, and it's a gross one. The same doesn't belong on the Post, it belongs on the person who wrote that and upon the culture that allows for sentences like that to be written.
- res0nat0r 12y agoThat doesn't discount the fact that the surge pricing algorithm is still automatic. They don't have people sitting at their evil corporate HQ clicking buttons trying to maximize screwing people over.
- davidgerard 12y agoNo, but they knew what they were doing and can't claim they didn't choose to continue.
- dllthomas 12y agoAlthough it's possible (no idea whether it's the case) they didn't have a mechanism to shut it down, on the time frame they would have needed to.
- davidgerard 12y agoWe can't philosophically disprove it. But Occam's razor applied to the behavioural evidence suggests Uber thinks surge pricing is fantastic, and keeping it in place during crises is corporate policy unless and until there's a media backlash large enough for it to actually get through their thick skulls that people are pissed off.
- 12y ago