[dash2]

The same laws of supply and demand also explain the price of employee labour, no? The big question is whether one price beats flexible pricing. It's not obvious that having a single price for all Uber drivers would benefit everybody, presumably it would have deadweight costs by pricing some drivers out of the market.

[chrisseaton]

The difference is most people aren't providing their labour with a pricing model this dynamic.

If I look for Ubers and one is offering rides for 50p I'd take it, because the result should be the same as anyone else offering something more expensive and I have no relationship with my Uber driver.

If a gardener stats to offer gardening services for 50p an hour I wouldn't go with that, because I have a relationship with my existing gardener and I'm suspicious how quality someone can be for 50p an hour.

See the practical difference?

[dash2]

I see your point. It sounds as if you agree that in Uber's case, flexible pricing is appropriate. Or do you think that Uber should price its cabs flexibly but pay a flat rate to its drivers?