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I simply refuse to believe, that the _only_ effective way to tell drivers of any service (Uber, Lyft, regular cabs) that there is a huge demand somewhere is to
by spacefight 12y ago
I simply refuse to believe, that the _only_ effective way to tell drivers of any service (Uber, Lyft, regular cabs) that there is a huge demand somewhere is to hike the price x times.
Of course I might be wrong - I haven't tried to run a cab service ever.
Edit: Or asked differently - why is surge pricing 4x or sometimes even 5x? Why isn't it like 1.10x? My guess it's profits 101.
- dllthomas 12y agoI've definitely heard rumours of drivers that drive only during surge periods. No idea as to the veracity, but clearly the higher you hike the price the more people will find driving worthwhile.
- mseebach 12y agoI suspect that's unlikely. The drivers I've talked to (London) say that surges are short and geographically isolated: They're only worth it if you're already on the road and fairly close to the affected area.
- dllthomas 12y agoGood point. On reflection, I suspect the context was predictable surges (New Years Eve, &c).
- mseebach 12y agoWell, now you're moving the goal-posts. Nobody insists that this is the only way. But it's a way, and it appears to work well - and it's perfectly consistent with one of the most basic and uncontroversial tenets of economics. It's obvious that Uber is an experiment on many levels. Their approach to public policy and regulation is one, another is whether users will accept a priority of better availability over uncertainty of prices (and so the risk of feeling fleeced), rather that the "old style" total certainty of prices over uncertainty of availability.