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Not All Uber Drivers Like Surge Pricing, Either

Posted by timothy on from the what-the-market-will-bear dept.

CNET reports that Uber's practice of surge pricing, which sometimes raises the ire of passengers, isn't universally acclaimed by the company's drivers, either. "[M]ost Uber riders," according the the linked article, "despise surge pricing," though it's not clear quite how that "most" is arrived at. From the piece: They've complained about running up bills totaling hundreds of dollars, and have criticized the company for using surge pricing during emergencies, like Hurricane Sandy and the Sydney hostage crisis. The San Francisco Better Business Bureau gave Uber the grade of an F because of complaints related to surge pricing. And New York lawmakers have even proposed legislation to put limits on how high fares can go. Now some drivers, like [San Francisco Uber driver Peter] Ashlock, are also having second thoughts on surge pricing." On the other hand, what system would you propose to better reward drivers for working at high-demand times?

5 of 250 comments (clear)

  1. Surge Pricing - Why The Hate? by Afty0r · · Score: 5, Interesting

    I don't get the hate for surge pricing; it feels, to me, like a cry for education.

    For example, an Uber where I live costs around half or less that of a regulated taxi. *Some* of my friends complain like crazy when the surge modifier is like 140% - not realising that it's STILL cheaper to have Uber around than use the old system. Then they suggest a "remedy" for surge pricing, that is basically moving back to something closely resembling the old system. Essentially, their proposals would result in a "constant 100% surge pricing" just to have predictable prices.

    Surge pricing achieves two things:
    1] Encourages drivers to work peak times in peak areas, increasing service.
    2] Prices a scarce resource accordingly, meaning that people can choose an alternative (wait, don't go, use a different transport system) appropriately instead of just having a fucking LOTTERY of who gets the only cab available.

    Surge pricing is good for everyone, and just about everyone I have ever explained it to has gone "Oh yeah I see what you mean". We just need to educate people.

    That said, I am curious to hear of any legitimate arguments against surge pricing - anyone got any?

    1. Re:Surge Pricing - Why The Hate? by localman · · Score: 5, Insightful

      > having a fucking LOTTERY of who gets the only cab available.

      I don't get the hate for this approach. Perhaps some education is in order. When there aren't enough resources to go around, there are different ways to perform allocation. Each method has different moral implications. For example, a lottery implies equality between all people and is best used for resources that are perceived as utilitarian or necessary. Fair market pricing implies that the more money you have, the more important you are and is best used for resources that are perceived as a luxury. Of course this can be argued about all day, but it's not shocking that some people would find fair-market pricing to be inherently unfair.

      What if there isn't enough food or medicine to go around? Is a lottery the best approach? Or the fair market? Or perhaps rationing? Should a person with more money be able to redirect resources to themselves, even if it is not as important to their survival as someone who has less money? Transportation can be vital to maintaining a job or caring for kids - it can also be a luxury. I can see an argument either way.

    2. Re:Surge Pricing - Why The Hate? by FlyHelicopters · · Score: 5, Insightful

      ANd before you start bitching at me for being $HUMANCHARACTERISTIC, think about what YOU do during a disaster. What did YOU do during Katrina? Or Rita? Oh right, fucking nothing.

      Actually, at the time I worked in Dallas for a local helicopter flight school. We took our Bell 206 Jetranger and our Robinson R-44 helicopters and loaded up with supplies and flew down there. We spent all day picking up people off rooftops and other locations that were trapped by water and flew them to safety and didn't charge a penny for it, the owner ate the cost.

      Why?

      Because that is what decent people do in times of need.

  2. Makes no sense by Cytotoxic · · Score: 5, Informative

    This complaint just doesn't make any sense. We are moving to this pricing model all over the place, even in traffic control situations. Tolls on bridges and tunnels and express lanes are often "surge priced" these days. The express lanes into Miami on I-95 are only a quarter most of the time. But during rush hour and other heavy traffic times the lanes bump up towards $10.

    And those are fixed resources - so there is no way to get more cars through the tunnel or over the bridge. With Uber the raised prices will theoretically get extra drivers on the street - limiting the surge in prices and getting service to more people.

    And as others have mentioned - if you don't like the policy, you have alternatives.

  3. Re:If only... by Grishnakh · · Score: 5, Insightful

    You want to regulate pricing, so that you have a corrupt cartel which keeps competition limited and prices high?

    Because that's what we had before Uber came around.

    We don't need regulated pricing, we need competition. And that's what we have with Uber and Lyft (who compete against each other). What we need is a few more services like those, and then several apps which do for them what PadMapper does for the rental market, and aggregates them and lets you quickly find out which service will give you the best combination of fare price and convenience (e.g., a cheaper fare probably isn't worth it if you have to wait an hour to get picked up).

    All this whining about surge pricing is silly. The pricing is not a surprise: Uber's app tells you before you ride how much it's going to cost. If the price is too high, don't buy it. Most of the time, Uber rides are far cheaper than regular cabs, and you get to ride in a much nicer vehicle. Without surge pricing, drivers wouldn't bother driving during certain times.