Uber Pushing For Patent On Surge Pricing

mpicpp sends news that Uber is renewing its push for a patent on "surge pricing," the practice of increasing rider fees when many people are trying to find transportation. The system measures supply (Uber drivers) and demand (passengers hailing rides with smartphones), and prices fares accordingly. It’s one of at least 13 U.S. patent applications filed by Uber or its founders to give it an edge over potential rivals ahead of a potential initial public offering. So far, Uber hasn’t had any luck. Ten applications were initially rejected by the U.S. Patent and Trademark Office for “obviousness” or for covering something not eligible for protection.

Comments

Re:Supply / Demand curve

[angel'o'sphere]

Yes, and we all know that law does not exist, it is a simplification to explain 4 year olds how markets work.

In reality a bakery bakes 1000 biscuits. There is a price sign which says 80cents. It does not matter if they are sold out at 4PM or at 6PM. It does not matter if there are only 100 left at 3PM, the baker won't increase the price. He still sells them for 80cents.

The next day again: he won't increase the price to 85cent because all his customers coming and expecting the 80cents price would be shocked.

What he is doing is very simple: he will bake more biscuits and sell _more_ for the same price. Perhaps he will even buy a new baking machine and get more efficient will _lower_ the price.

If you ever had looked at Mors Law and electronics you had noticed demand increase over last decades tremendous. So did the prices sink.