Honolulu Lawmakers Pass 'Surge Pricing' Cap For Ride-Hailing Companies (reuters.com)
Honolulu could become the first U.S. city to limit fares ride-hailing companies can charge when demand spikes, following a city council vote on Wednesday, the Honolulu Star-Advertiser newspaper reported. From a report: Ride-hailing companies such as Uber and Lyft use a model known as "surge pricing" in which the fare for a ride rises when factors such as rush hour and bad weather increase demand for the service. The practice could be limited in the future in Hawaii's largest city after the Honolulu City Council approved by a 6-3 vote a bill requiring city officials to cap surge pricing by ride-hailing companies, the newspaper reported. For the bill to become law, however, it still needs to be signed by the Mayor Kirk Caldwell, whose administration appears to oppose the measure, Hawaiinewsnow.com reported.
Let's repeal that pesky law of supply and demand.
It's not a surge price, it's the normal price. The other times are just off peak discounts.
It will be interesting to see what difference it makes if there is a cap implemented; though my own opinion is that one shouldn't be.
The argument for surge pricing pretty much boils down to the idea that sellers should be able to charge whatever they think buyers will pay (thus when there is scarcity prices increase) and that the existence of surge pricing encourages sellers to operate when demand is higher increasing supply. I'm yet to be persuaded that surge pricing really makes that much difference to supply at peak times (people who want work were likely to work when their is demand, and people who weren't planning to work often won't be able to respond fast enough to benefit from surge pricing). I am comfortable with the idea that people can make huge profits by selling a scarce resource, but I can see why many people dislike that it is "profiteering" and restricting access to a relatively basic service for those with relatively low incomes.
I for one hope it passes. I'm sure there are many people out there who can theorize what such a cap would do, but nothing beats real world data. So, if it passes, a few years from now if some other city tries to pass such a measure, there will be data to show what actually happened, so people won't end up being labeled as haters for arguing for or against such a law.
It's the stupid commies interfering with Free Market again... let's see how that turns out shall we?
Prediction: OUTLOOK NOT GOOD
the people will just go to regular taxis instead. that's who pushes bills like this in the first place.
The problem you have with legacy taxi companies is the slow incremental increases in legislation that made the industry suck. It would be a shame to see that happen to ride sharing too.
For fucks sake....They don't even mention it in the full article. 3x? 1.3x? 50x? There is a difference between totally ridiculous gouging and legitimate supply and demand.
TFBill says no surge pricing at all.
http://www4.honolulu.gov/docus...
"The director shall establish, by rule, the maximum fares and baggage charges that may be charged to passengers of private transportation companies. A private transportation driver or private transportation company may not charge more than the maximum fares and baggage charges established by the director. The rules shall not allow surge pricing, as defined herein, if the increased fares and charges under the surge pricing would exceed the maximum fares or charges established by the director for normal operations. The director shall review the fares and charges at least once every two years..."
That cap on surge pricing will limit supply during periods of high demand, but hey to the liberal politician's mind this is a win as it shows he cares about the little guy...
Problem is in this case, the little guy is driving the car as well as riding in the backseat. And all they really accomplished is to inconvenience the riders by making them wait longer for service while limiting what drivers can collect during peak load.
What would have been better is to require a service that can *notify* riders of fair increases and periods of high demand as much in advance as possible so they didn't get surprised by the huge jumps or knew that if they only wait another 2 hours prices may decline. In fact, this would help both supply and demand, by notifying drivers too. Make it the service mandatory and free to all though the company's application and let users schedule their return trip and possible times with fairs being locked in when the trip is booked, not when the trip is completed.
"File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
Legally speaking, what gives the city council the authority to set prices and price limits?
Seriously, could a city council just decide they want to put a price floor or ceiling on anything they want? Let's say the Mayor wants to buy spam for a penny a can. Could the city council just decide spam must be sold for no more than 1 cent? Or is there any legal limit to what sorts of price controls a city can impose?
(Yes, I know, if they did this, there would not be any spam for sale within city limits. I'm trying to understand the legality here, not the likely outcome.)
IANAL but I'm guessing that since rights start with the people and flow upward, a city can pretty much do whatever they want, as long as it doesn't conflict with state or federal laws, or the Constitution. If none of those say a city can't restrict prices, well then they can.
This seems like a great dodge to ban items you don't want in the city: just impose an absurdly low price ceiling. You can sell all the pot you want but for no more than a penny a pound, with a $50 per ounce tax.
Somehow I managed to paste a link in title text rather than HTML, and this after manually excising the utm_term from the URL (how is that even possible?)
In Trump's Washington, public business increasingly handled behind closed doors
[*] Somehow I suspect the utm_term is just for show anyway:
29f9047c-54fb-11e7-ba90-f5875b7d1876_story.html
Mystery solved: I accidentally lopped off the closing double quote in the URL href tag. Slashdot recovered from this error fairly gracefully. My HTML to wiki script turned the bottom half of my post into %20 escape sequences. Trust Haskell to point out the error of your ways.
I wiki my longer posts as an exercise in finding out how often I repeat myself.
Verdict so far:
* thematically — all the time
* actual language and dress code — hardly ever
Of course, you keep going back to the same reference pool (e.g. Churchill's quotation). But that's because the common reference pool isn't actually all that large.
I read an article pool just last night where the reference pool was Alasdair MacIntyre, Andrew Sullivan, Ta-Nehisi Coates, Zygmunt Bauman, and Walker Percy.
On this list, three out of five is a pretty good score for an informavore gadfly (Walker Percy is mainly known—in popular circles—for writing the forward to A Confederacy of Dunces, much like Debbie Reynolds is barely known for her own immense filmography, but rather something else).
Think of all those people making too much money and how government is directly helping them. And then there's the aspect of more people need rides and the government is helping these companies learn how to disregard them.
... WIN. Excellent.
... I'm not the one being creative).
Guys! This is a WIN
Creativity works everytime. Especially in states locked into the Democrat party where the state government helps people decide if they can have homes by allowing or disallowing them to have water meters. Or by helping them decide if expensive jet inter-island travel is better by telling them that all ferry travel is a crime against nature. Or by disallowing non-state hospitals from starting up because those poor, poor state hospital workers can't compete (in that case I can't take credit for a creative reason, this is actually the official reason
And look how Hawaii has benefited from all this: they enjoy the highest levels of crystal meth amphetamines, drug related crimes (which are really acts of innovation and property redistribution committed by people ahead of their times), community interactions (which may be in the form of ethnic violence), and fancy products and housing (so fancy, in fact, that they are the highest prices in the nation next to San Francisco).
Shouldn't we all aspire to these things? Hopefully its just a matter of time before we all can these wonderful policies brought to our lands. I was just sooo sad when I uprooted from Maui and moved to Raleigh, NC 7 years ago.
Thank you government helpers!
A supply shortage is created when there are more buyers at a given price point than there is product to sell. In this case, rides / riders.
A demand shortage is when there is a gut in supply given a price point. You end up with unsold inventory (drivers waiting around).
You want to move the price until you find a supply/demand balance. Anything else is a shortage of one type or another. The government of Honolulu is screwing over drivers, pushing them out of the driving pool. There will be less people incentivized to drive if you if they make less money on average. Surge pricing brings up their average so they will be more willing to drive for you on any other day.
If you don't understand the economic models, go to school. Lib-tard
Uber's policies. Driver will be reported afterwards and be barred from driving.