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by ABrandt
5276 days ago
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I'm as big of a proponent of the magic that is supply and demand as anyone, but uber's pricing was not exactly transparent. Last night was the first time that I used the service. My first ride from my hotel in Chicago to my party destination at 9pm was $15, awesome. Not only was I thrilled by the quality of service, but I saw the message that fees would be higher that night and was expecting a higher price tag. Fast forward four hours later and I was ready to head back to the hotel. Same route, except this time the price was $54. Ouch. The thing about market forces is that the buyer needs to be aware of the price in order to make a rational decision that affects demand and alleviates the strain on existing supply. Uber's app indicated I would be informed of the additional charge prior to my ride, but that certainly never happened. In that regard, I feel slighted and my feelings toward the company have been damaged as a result. |
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In London it's almost impossible to get a black cab on NYE. Black cabs have their fares capped by regulation to something like 3x the regular fare. As such, it's not lucrative to work that night for such a small difference when they could be with their families.
Minicabs on the other hand are not capped, and are largely unregulated. Many of them do work precisely because they can charge much higher rates, and they do.
I once got a minicab on NYE that cost over £170 for a journey that should have cost closer to £30. Caveat emptor.
What seems to be the case here isn't the market doing what the market does best (regulate supply and demand and the cost thereof), but the naivety and optimism of the consumer who hopes for cheap prices despite a severe spike in demand and a shortage in the supply able to meet the demand.
The last time I needed a cab on NYE, I chose to walk the 11 miles home. I was drunk, I was singing New Order most of the way. I actually really enjoyed the walk and saved myself a lot of money in the process. I've lost my naivety around cab fares on that night.