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by a2kadet 4445 days ago
Except the largest barrier to entry in the cab market is politics protecting the status quo in the regulated cab business. By tearing this down, Uber is effectively paving the way for competitors such as Sidecar and Lyft to disrupt them.

Also, I personally am sick of people complaining about Surge pricing. It's supply and demand. The tradeoff is ability to get a ride. When it rains, the supply of cabs stays the same but demand sky rockets. This surplus is passed to the consumers who are lucky enough to get a cab but many are literally caught in the rain. Uber raising the price is simply allowing the person who wants the ride the most to benefit from it.

2 comments

> This surplus is passed to the consumers who are lucky enough to get a cab but many are literally caught in the rain. Uber raising the price is simply allowing the person who wants the ride the most to benefit from it.

I think people understand that. But they might feel like distributing the limited cab supply based on luck is more fair than based on who will pay the most.

Why? If I'm running late to an appointment I will be willing to pay more than someone who is heading home from work to unwind and is in no particular hurry.

I love the concept that my fate is in my hands. It's not a matter of skill or chance in hailing a cab. I'm given all the information I need to make an adult decision and get to choose if it is worth it or not.

Sorry, rereading that some of the language gives a condescending tone which is very much not my intent.

So I don't actually know, does Uber flash up a big red warning when you're about to book a cab that your usual $10 ride is going to cost you a lot more? One of the reasons people dislike the surge pricing is that it was taking people by surprise.

If Uber wanted to still please the people with more money than time they could just add a 'bribe' button to add $5 or $10 or more to your ride request so drivers will be more likely to accept that request.

Yes, they show a big warning and make you type in the surge multiplier to confirm that you've seen and understood it.
But they might feel like distributing the limited cab supply based on luck is more fair than based on who will pay the most.

A similar situation is seen in distribution of immigration visas. Some people 'pay' for the privilege via investor class visas. Some people get in through nepotism via family class visas. Some people get in randomly through visa lotteries.

It's hard to say which of these is more fair than another. Probably depends on your point of view.

perhaps they would like to make surge pricing optional and let passengers agree to pay the surcharge or not..then let drivers choose which passengers to pick up..
"First come first served" isn't a great way to distribute limited resources, but I don't see how "serve the richest first" is better, socially speaking.