Gouging may be good for a day (assuming there weren't other good transport options, which is simply untrue in SF), but it sucks as an acquisition method.
My experience with Uber was essentially:
(1) "Hey, it sounds great, but that's a bit pricey. It can't really be worth it, can it?"
(2) Decided to take someone to dinner via Uber because it was more impressive than a cab.
(3) "Hey, this is actually pretty cool and totally worth it."
(4) I'm now a repeat customer, even when traveling alone.
In my eyes, the key is that they need to find a step (2) for a more general case. Having a day where there are no cabs might be a small push, but having a day where there are no cabs and Uber is the price you would have paid anyway is absolutely killer.
Short answer: Long-term thinking is better for them than short-term thinking.
I was going to post nearly the same thing. It may upset the strikers, but it's a brilliant business move by Uber to snag some customers that may not have given it a shot otherwise, and turn them into repeat users.
It's not a long term market pricing strategy. It's a PR maneuver, and it's a damn smart one. There will be a ton of interest in this story, especially for the 'victims' of the strike - the actual customers. Uber is using this situation to gain awareness in the minds of their target market.
Even if you're not in the correct location, you might be some time. I've got a friend who's going to be in SF from out of state tomorrow and he's decided to check out Uber because of this.
My experience with Uber was essentially: (1) "Hey, it sounds great, but that's a bit pricey. It can't really be worth it, can it?" (2) Decided to take someone to dinner via Uber because it was more impressive than a cab. (3) "Hey, this is actually pretty cool and totally worth it." (4) I'm now a repeat customer, even when traveling alone.
In my eyes, the key is that they need to find a step (2) for a more general case. Having a day where there are no cabs might be a small push, but having a day where there are no cabs and Uber is the price you would have paid anyway is absolutely killer.
Short answer: Long-term thinking is better for them than short-term thinking.