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by berberous 2456 days ago
Ignoring subsidies that Uber pays drivers, if you let drivers set their own rates, I don't see how that's not worse for drivers. Whatever rates Uber sets, there is a willing driver 2 minutes away, so that price is clearly sufficient for a driver. Letting them set their own rates seems like it would just incentivize lower rates at a time when the gig is already pretty bad and hard to live on.
1 comments

I wonder if there would be a way to allow someone to cap their amount they want to pay for a ride and the same for the driver ... I wonder if being able to schedule ahead of time and having a driver accept an exact job hours ahead would be interesting.
I can imagine a simple model where a customer requests a ride. The nearest 3 drivers get asked how much they want to take the fare (perhaps a simple UI saying "What would Bob have to pay you to get a ride to Brooklyn? [$12] [$15] [$20]"). Driver who offers the lowest gets the job.

Uber sets the middle choice to be their guess of the market rate, and the above and below options allow the driver to either undercut to be sure of getting the business, or raise prices to try and get more money.

Considering how much Uber is under pressure for employee vs contractor and unionisation, I'm surprised they don't do this.