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The Black Car Company That People Love to Hate

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Re: The Black Car Company That People Love to Hate

#3
I like that a good chunk of the article was about service in DC. When I lived there I still ran in to the occasional Uber driver that would not want to take me to my home in Alexandria from the heart of downtown.

I'll also echo the author's comments that Uber opened up parts of DC that I would have otherwise avoided including Georgetown, Adams Morgan, and the Eastern end of H street / Northeast DC.

At the time Adams Morgan was getting more parking but I really didn't enjoy driving up there and getting a taxi was still spotty at certain times.

I don't live there any more so I don't know if the H street light rail is operational yet but I can say that I never would have frequented Dangerously Delicious Pies without Uber.

As a previous working Washingtonian I wish Uber the best and if nothing else am happy for the change they are driving. (Pun intended ;)

Re: The Black Car Company That People Love to Hate

#4
post #2

Yeah, there's just that little price gouging problem during times of scarcity. I think they took a big PR hit when the cost of rides skyrocketed during recent storms. Old style regulated cab companies can't do that.

I got hit by a price modifier during my last trip using Uber, but I didn't (and still don't) think gouging is the right word. I figure it's supply and demand modifier. They can't change supply, but demand has gone up for some reason (storms, in your scenario and mine, actually). Some people aren't willing to pay more, so it curbs demand, while incentivizing drivers who may not wish to drive in inclement weather to stay out. Of course, it's really just taking advantage of a situation to Uber's benefit, but I still think "gouging" is too strong of a word for it.

Re: The Black Car Company That People Love to Hate

#6
post #2

Yeah, there's just that little price gouging problem during times of scarcity. I think they took a big PR hit when the cost of rides skyrocketed during recent storms. Old style regulated cab companies can't do that.

Regulated cab companies simply sold out during the snowstorm -- there were more people asking for rides, and fewer drivers willing to drive.

Uber's approach solved both problems: filter down the list of ride requests to those who really need to go, and provide an incentive for drivers to drive during the really nasty weather.

Uber is a luxury good, and the price floats with supply/demand. There's nothing wrong with that, and no one is entitled to use their service.

Re: The Black Car Company That People Love to Hate

#7
post #2

Yeah, there's just that little price gouging problem during times of scarcity. I think they took a big PR hit when the cost of rides skyrocketed during recent storms. Old style regulated cab companies can't do that.

Have you tried getting a regular cab ride during a snowstorm? At the beginning of this year it took me three hours to get a cab after Boston got a few inches of snow.

Re: The Black Car Company That People Love to Hate

#8
post #2

Yeah, there's just that little price gouging problem during times of scarcity. I think they took a big PR hit when the cost of rides skyrocketed during recent storms. Old style regulated cab companies can't do that.

I got hit by a price modifier during my last trip using Uber, but I didn't (and still don't) think gouging is the right word. I figure it's supply and demand modifier. They can't change supply, but demand has gone up for some reason (storms, in your scenario and mine, actually). Some people aren't willing to pay more, so it curbs demand, while incentivizing drivers who may not wish to drive in inclement weather to st…

Price gouging is supply and demand. It's just supply and demand in ways that seem particularly unfair, like withholding food to make a profit.

Whether or not you call it gouging mostly has to do with how essential a service you consider transportation to be.

Re: The Black Car Company That People Love to Hate

#9
post #2

Yeah, there's just that little price gouging problem during times of scarcity. I think they took a big PR hit when the cost of rides skyrocketed during recent storms. Old style regulated cab companies can't do that.

The thing is the alternative to the "gouging" isn't "lower priced rides for everyone", it's "most people can't get a hold of a cab no matter how badly they want one".

The "gouging" has three big effects: (1) More drivers willing to deal with the weather for the increased pay, so more people can get out of the storm; (2) A (highly imperfect) way to prioritize the people who most want/need the service. A person who really, really, really needs to move quickly has a way to credibly express that preference over someone who would kind of like an Uber, but could do without - by being willing to pay the higher rate. (3), or course, is more money for Uber. (1) and (2) are very good things, and I'm indifferent to (3).

"Gouging" is generally only a thing when there's a monopoly, which Uber doesn't have on transportation. People can look up Uber rates and decide if it's still worth it to them to go Uber or take something else.

(See http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/20/u...)

Re: The Black Car Company That People Love to Hate

#10

Earlier quoted context omitted.

I got hit by a price modifier during my last trip using Uber, but I didn't (and still don't) think gouging is the right word. I figure it's supply and demand modifier. They can't change supply, but demand has gone up for some reason (storms, in your scenario and mine, actually). Some people aren't willing to pay more, so it curbs demand, while incentivizing drivers who may not wish to drive in inclement weather to st…

Price gouging is supply and demand. It's just supply and demand in ways that seem particularly unfair, like withholding food to make a profit. Whether or not you call it gouging mostly has to do with how essential a service you consider transportation to be.

It's not gouging when there's competition - all of the other ways of getting around (cabs, public transit, friends who have cars, other ride sharing/providing services) are as available as they were previously. If Uber were the _only_ way to get around, then it could _potentially_ be gouging.
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