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Uber drivers gang up to cause surge pricing, research says

telegraph.co.uk

11–20 of 177 posts

Re: Uber drivers gang up to cause surge pricing, research says

#11
People game the system. Always. Have learned that for years when it comes to safety systems.

Even uneducated people become very intelligent when it comes to gaming the system to their advantage. It is always a cat and rat game between technical adjustments and when people find a way to game the system again.

Re: Uber drivers gang up to cause surge pricing, research says

#12
post #8

edit Supporting comment apparently wasn't appreciated. No delete button.

I drive part time and it definitely covers costs and then some. I gross something like $0.90/km and my costs including gas, maintenance, and depreciation are around $0.30/km. Net is something a little more than minimum wage ($11/h).

Re: Uber drivers gang up to cause surge pricing, research says

#14
post #9

The first guy to log back in (or the guy who doesn't log off at all) wins the game to the detriment of the others, limiting the extent of this practice. You can't have a successful oligopoly when there's no barrier to entry.

The post seems to make clear that once the surge pricing becomes active more than on person can capture customers at that price level, meaning their earnings are likely higher by doing this.

Re: Uber drivers gang up to cause surge pricing, research says

#15
post #10
post #5

Obvious in hindsight. This sort of thing is inevitable any time you have dumb software on one side and humans on the other side. I'm mostly a fan of these non-taxi "taxi" services, but it seems like they are slowly and painfully rediscovering why taxis ended up so regulated in the first place.

Yeah, I'm mostly not a fan, now that we're a few years in. Waves of people inexperienced, untrained in shuttling people around a major metro have resulted in downtown Chicago being an utter mess compared to only a few years ago. Chicago forced cab drivers to go through a training and certification course that at least forced them to understand the major routes and grid system we're on, and every time I've been in an…

Fellow Chicagoan here. I agree. Used to be that cabs were the most annoying, unpredictable cars on the road. Now it's the Ubers and Lyfts.

Re: Uber drivers gang up to cause surge pricing, research says

#16
post #11

People game the system. Always. Have learned that for years when it comes to safety systems. Even uneducated people become very intelligent when it comes to gaming the system to their advantage. It is always a cat and rat game between technical adjustments and when people find a way to game the system again.

This.

People learned the phone company would refund any Denied All Knowledge of a long distance call. Call up, get a credit.

Then phone company said you cant DAK calls 2 months in a row: so customers called in every other month.

Then, they eliminated operator handled calls for small bills. Call in, get an IVR, get a credit.

Phone company caught on and limited credits to $7 per month, every other month.

Customers started crediting And on and in...cat and mouse.

Then, few realized you only had to pay 91% of the past due balance to not get shut off..

Others finally realized that if your account gets associated with a elected federal official or a PUC complaint you account will never get treated for collections.

--- Another simple one: having to press "0" 3 times to get to an agent on some IVRs..

Re: Uber drivers gang up to cause surge pricing, research says

#17
post #5

Obvious in hindsight. This sort of thing is inevitable any time you have dumb software on one side and humans on the other side. I'm mostly a fan of these non-taxi "taxi" services, but it seems like they are slowly and painfully rediscovering why taxis ended up so regulated in the first place.

[deleted]

Re: Uber drivers gang up to cause surge pricing, research says

#18
post #10
post #5

Obvious in hindsight. This sort of thing is inevitable any time you have dumb software on one side and humans on the other side. I'm mostly a fan of these non-taxi "taxi" services, but it seems like they are slowly and painfully rediscovering why taxis ended up so regulated in the first place.

Yeah, I'm mostly not a fan, now that we're a few years in. Waves of people inexperienced, untrained in shuttling people around a major metro have resulted in downtown Chicago being an utter mess compared to only a few years ago. Chicago forced cab drivers to go through a training and certification course that at least forced them to understand the major routes and grid system we're on, and every time I've been in an…

I used to think cabs were terrible drivers, but most of them (especially in heavily regulated markets) are very experienced drivers and simply disregard rules of the road that are inconvenient for them.

In contrast, 'ride sharing' drivers seem to have no sense of direction, and are genuinely oblivious to the rules of the road.

In short, when in either type of car, I fear for my life.

Re: Uber drivers gang up to cause surge pricing, research says

#19
post #8

edit Supporting comment apparently wasn't appreciated. No delete button.

It’s voluntary. If it becomes unprofitable, drivers leave. If they lose money, they won’t do it.

They give a share to Uber because Uber is their lead generation. Many businesses give a share of their money to Google because Google brings them business.

An Uber driver can market their own business and keep all the money if they want just like a business could go out and market without using AdWords.

If you are unhappy with the pay Uber drivers make, you are welcome to pay whatever you want. It’s called a tip. Hand the driver cash for whatever amount you think compensates for the “exploitation” you imply (and are enabling by your own admission.) Otherwise, choose another transportation option and the market will respond.

I rarely hear anti-Uber people demand that supermarkets charge more for tomatoes despite those that pick tomatoes working in extremely tough conditions for low pay. I used to drive a taxi for a summer and I know it’s a non-stop hustle and not the best job, but I was at least in an air conditioned car listening to the radio all day and not out in the fields picking fruits and vegetables. It ended up being a low profit pursuit, so I ended up moving on to something else.

I have a hard time feeling sorry for people that do jobs like Uber because they, with some moderate ambition, could improve their lot – they already own a car, they could make deals with local companies that send lots of people to airports, for example. They could work on building an actual business while they pay the bills with their Uber income – just as an example. Still other drivers might start a mobile car wash service for other Uber drivers, etc. There are plenty of ways to evolve past depending on Uber as one’s sole income. But most people aren’t ambitious at all – they just want to just do what they’re told and collect a check no matter how meager. Other drivers use Uber for extra income or it’s a transitional job.

Any driver thinking they will make a career out of Uber is a fool. If they don’t like the conditions, they should be working hard and to create something of their own. It doesn’t take much money, but it takes ambition.

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