[evil-olive]

> In practice drivers do set their prices by only driving when the price is what they're willing to pay

So your argument is that drivers really set the price...

> (e.g. only during surge pricing)

And your example of drivers setting the price is...algorithms running at Uber and Lyft that set prices. Algorithms which Uber and Lyft would surely regard as proprietary trade secrets and resist disclosing to drivers, passengers, or government regulators.

How is that drivers setting prices, exactly? If an Uber driver wants to give me a ride to the airport, the Uber app decides that it costs $X. If that Uber driver believes that Uber's surge pricing model is inaccurate and thinks the real price should be $Y, there is no facility for me and the driver to negotiate on a different price.

[solidasparagus]

Similar to how many other independent contractors set their price - they decide what they are willing to work for and, as contracts come in, they either accept or reject based on what that contract is offering to pay.

Just like how contractors will have several contracts they are choosing between, drivers routinely use multiple apps in parallel so they can choose between various contracts/rides.

[pishpash]

What are you saying? Uber matches you to a willing driver to pick you up for $X, it's a competitive market so whatever "algorithm" you think they use it's the market that decides the price, but the driver "should" get $Y? Well you are free to tip $Y-$X to the driver then. Why don't you try that next time?

[paxys]

What competitive market? There is no spread, no bidding. Buyers and sellers cannot negotiate. Uber decides prices based on some proprietary, secret algorithm.

"We are going to pay you $X, if you don't like it you can leave" is called a salary, not a marketplace.

[aceperry]

Not only that, but uber and lyft copy each other's prices. When one of them lowers the pay to drivers, the other one follows soon. Usually, the pay to drivers is lowered, but the cost to riders doesn't go down as much, and uber/lyft has been taking much more from drivers, especially the 'surge' surcharge. Much less of that goes to the driver than before.