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Uber Pushing For Patent On Surge Pricing

Posted by Soulskill on from the efficiently-separating-you-from-your-money dept.

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.

11 of 190 comments (clear)

  1. not original by bloodhawk · · Score: 5, Insightful

    Surge pricing I would have thought falls under the obvious category. It is simply pricing for supply and demand. higher prices bring in more suppliers and reduce the buyers. most businesses don't do it because it is difficult to manage and can cause a lot of customer aggro not because they are not aware of the supply and demand models.

    1. Re:not original by houstonbofh · · Score: 4, Funny

      Ticket scalpers will sell you prior art for $100 over face value.

    2. Re: not original by bloodhawk · · Score: 3, Insightful

      hotels and airlines both adjust there prices constantly according to available supply and demand. There are many many other examples.

    3. Re: not original by bill_mcgonigle · · Score: 3, Insightful

      Price "gouging" is a good thing. It sends information signals to the market to divert goods to where they are needed. Hurricane approaching Florida? That load of plywood headed to Michigan should be diverted to boarding up windows in Dade County instead of to building a dog house in Lansing. But if the price of plywood is kept artificially low (only possible by the guns of government), there's no incentive to send the truck towards a hurricane, so the Michigan contract is fulfilled.
      During Hurricane Sandy some friends and I looked at renting a truck and getting some generators from our local stores to NJ - about 300 miles. It would obviously have to be worth our effort but both we and the people without power who could not find generators would benefit. But then Chris Christie got on TV threatening anybody who would charge above big-box store non-emergency prices with National Guard action. "Screw that", we said, "they can sit in the dark and enjoy their fairness".
      The important information theory piece to learn is that prices are the information signals that are sent through markets. The important economic piece to learn is that scarcity is real. The important political piece to learn is that politicians ignore both, to the detriment of their people but to their own personal gain.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    4. Re: not original by rtb61 · · Score: 4, Insightful

      I hope one day you find yourself hanging from a cliff and just before the person reaches down to help you they say, agree to hand over all your assets or I will divert my resources to else where and assure you, that you can always wait for a more competitive offer. Perhaps a fire brigade that agrees to buy your house for 50% of it's value or they will not put out the fire. Price gouging practices inevitably leads to people creating disasters in order to exploit them. Creating monopolies are the same idea. So no, your ideas suck and they are grossly anti-social and have no place in a modern society.

      --
      Chaos - everything, everywhere, everywhen
  2. Surge pricing during security incident by Harlequin80 · · Score: 4, Informative

    They could patent surge pricing during terrorist or hostage activities.

    Uber managed to get some bad press here in Australia when their price went up to $100 for a callout to get out of Sydney when the guy took hostages in the Lindt Cafe there.

    1. Re:Surge pricing during security incident by rockout · · Score: 3, Informative

      I'm so tired of this bullshit example being trotted out as evidence of how evil Uber is. Here's the facts of what happened in Australia:

      A bunch of people suddenly wanted Uber rides out of the area during the hostage situation. Uber's computers responded accordingly, and automatically, in activating the surge pricing. Whether you like the surge pricing or not, it's designed to get more drivers onto the road by providing the incentive of higher pay to meet the spiking demand. One would assume that at least some drivers are more likely to go out and pick up passengers when their phones alert them that they can suddenly make 4x the normal fare.

      When human beings running Uber in Sydney became clued in as to what was happening, they made all rides in the area free.

      Here's what DIDN'T happen: Uber in Sydney finds out about hostage crisis, says "omg let's charge 4x the normal fare because bunches of people are going to want rides and we can gouge them!"

      You can disagree with Uber's business practices, or how they run their business, and that's fine, but when you just start making shit up, you lose all credibility and take away from an intelligent conversation on what to do about Uber. You're the problem.

      --
      I've learned that they're worthless, so I don't read AC comments anymore.
    2. Re:Surge pricing during security incident by CanadianMacFan · · Score: 3, Interesting

      It isn't the first time this has happened to Uber. Maybe they should adjust their system so that if they see a sudden spike in requests it alerts the humans for instructions instead of just jacking up the price. They could put in scheduled events, like the end of a sporting event or concert, so that it wouldn't bother them.

  3. Patenting Supply & Demand? by BoRegardless · · Score: 4, Insightful

    Adam Smith disclosed that centuries ago.

  4. Surge pricing london style by Anonymous Coward · · Score: 5, Informative

    I used to use uber in London a lot even with surge pricing it was cheaper than a london taxi, and I could also get one. After a few months it became clear that some thing strange was happening with the surge pricing.

    After working late one night I requested a cab, it looked like it was going to be there in about 10 minutes. It was really late and there wasnt much traffic, but car stayed at about 10 minute away for some time. I could see where it was so I started walking a way that would put me in front of it. There were some closed roads and I could move around quicker than a car through the inner city.

    Eventually I am in the same street as the car, which is weird, because there is no traffic and no cars on the road, plenty parked though. My phone goes ding and the driver has canceled. I walk up to where the car was meant to be and find the car, parked on the side of the road. Swearing I pull out my phone and use uber, again surge pricing f#!k it I want to go home. I book, the car behind my driver pulls out and immediately picks me up.

    The street I was in was quite near my work and its once I was familiar with, at 3am in the morning it wasn't normally full but this night it was. I wonder how long it took them to game the system?

    1. Re:Surge pricing london style by gnasher719 · · Score: 3, Insightful

      Obviously I see a lot wrong with this. It pisses me off. It absolutely pisses me off. That's how you destroy a service. Just make people hate you.