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Uber’s “Price Gouging” Is the Future of Business

8 pointsby johnparkover 11 years ago

4 comments

vannevarover 11 years ago
No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an integral part of the public transportation system, even though they are privately operated. In that context, it's unfair to permit the wealthy to co-opt that infrastructure for their exclusive use, simply because they can outbid their poorer neighbors.
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jgalt212over 11 years ago
Is it just me, or does it seem apocryphal that it requires an 8X revenue jump to get drivers to drive in the snow? To me it seems the market clearing surge ratio during a snowstorm is around 3X. So is Uber being straightforward in saying they are just taking their usual small cut (surge or no surge), or are they taking their small cut and the distance between 3X and 8X as well?
davidgerardover 11 years ago
Why price gouging is rare, even though economists, libertarians and other sociopaths love it:<p><a href="http://www.npr.org/blogs/money/2012/10/29/163861383/why-economists-love-price-gouging-and-why-its-so-rare" rel="nofollow">http:&#x2F;&#x2F;www.npr.org&#x2F;blogs&#x2F;money&#x2F;2012&#x2F;10&#x2F;29&#x2F;163861383&#x2F;why-econ...</a><p>tl;dr normal people with functioning empathy consider it grossly antisocial and won&#x27;t put up with that shit. If Uber wants itself regulated to hell, then the CEO just needs to carry on in this style.
brodneyover 11 years ago
It is also the past, for several hundred years now.