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Uber Knows Exactly When You'll Pay Surge Pricing (yahoo.com)

An anonymous reader writes: Uber has figured out exactly when you are more likely to pay double or triple the cost of your ride: when your phone battery is low. Uber's head of economic research, Keith Chen, recently told NPR on an episode of The Hidden Brain podcast that people are willing to accept up to 9.9 times surge pricing if their phones are about to go dead. Data about user batteries is collected because the app uses that information to know when to switch into low-power mode. The idea being: If you really need to get where you're going, you'll pay just about anything (or at least 9.9 times anything) to ensure you're getting a ride home and won't be stranded. A person with a more fully charged device has time to wait and see if the surge pricing goes down.The company insists that it won't use this information against you.

3 of 211 comments (clear)

  1. Uber and Lyft - hitchhiking for money! by mmell · · Score: 5, Insightful
    Let's face it - the reason Uber and Lyft are so cheap is because they aren't regulated. Just like a hitchhiker, you're basically at the mercy of the guy with the car keys. Being not regulated (like, say, a taxi service) means Uber and Lyft can do all sorts of schiesty stuff and not be in violation of the law.

    I can't wait until they start doing things like "Oh, you're in a bad part of town - you're going to pay even more!", "Oh, you're leaving an event of some kind - you're going to pay even more!", "Oh, you're a woman/ethnic minority/religious minority - . . ." . . .

    Sorry to hear about you're driver taking you for a ride - that's what you paid for, right?

    1. Re:Uber and Lyft - hitchhiking for money! by Anonymous Coward · · Score: 5, Insightful

      The problem is that the train, bus, taxi and your friend all need to obey the law, otherwise, they are in trouble.

      Uber's strategy is to play fast and loose with the law, pretending that they are/aren't a taxi company and that their drivers are/aren't contractors or that the do/do not work for Uber at all and such crap, while they become too large to dislodge from wherever they landed. Notice that since Uber doesn't obey the law (because they keep redefining what they actually are) they don't need to deal with costs that other entities have to deal with. They have an unfair (as in, illegal) advantage.

      In a functioning society, things aren't supposed to work like this. I'm glad that many places are pushing back and forcing Uber to play by the rules, or creating rules that allow everyone to play fairly.

  2. Re:Very smart of them, if tru by gurps_npc · · Score: 5, Insightful

    You are violating one of the most important principles of the free market - free exchange of information. Go read Wikipedia, it will explain how free exchange of information is essential to a free market.

    What's going on here is that one side has all the information and the other side is blind, depending on Uber to be honest.

    Uber has no business learning about the state of your phone battery. It doesn't need it and it's YOUR private, personal confidential information that poor software design let Uber steal. They don't tell you about the desperate need for cash by their drivers because their rent is due and they would accept ANY fair.

    Uber is not being 'good', it knows that if they unethically use your private information they have unethically gathered, then it will piss us off enough to pass laws preventing them from gathering it.

    The price of everything is the amount a buyer is willing to pay AND a seller is willing to sell when competition keeps prices fair and information is fairly and ethically exchanged.

    When you ignore the rules that undermine capitalism, you aren't being capitalistic, you are being a thief. And people like you is why socialism has grown so popular - when you cheat the way you want to, it upsets people and they demand government intervention.

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    excitingthingstodo.blogspot.com