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Instead of taking a loss to compensate drivers, perhaps they should just waive their 20% cut during emergencies, so 100% of the fare went to drivers. They coul
by agwa 12y ago
Instead of taking a loss to compensate drivers, perhaps they should just waive their 20% cut during emergencies, so 100% of the fare went to drivers. They could sell the surge pricing as hazard pay for drivers without opening themselves to the criticism of profiteering off an emergency.
Another reason to like surge pricing is that, in addition to increasing the supply of drivers, it reduces demand by incentivizing riders to conserve: people are more likely to split a ride with strangers when surge pricing is in effect. That's a desirable property when there's an emergency and your goal is to get people out of an area as efficiently as possible.