21–30 of 61 posts
I don't get it. Doesn't every airport in the world have taxis waiting. Why would you need an app to get a taxi at an airport.
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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.
This neatly demonstrates what the alternative to "gouging" is - a shortfall of supply. Like breadlines for transit.
The main selling point of Uber is the app--but eventually Yellow Cab, et al will also have slick apps. What's the long term competitive advantage, besides evading regulation? Self driving cars, most likely.
That's a lot of "eventually." Uber is a software company that runs cabs, basically. Their competitors - the old school, that is - are cab companies who are now faced with the challenge of writing good software. The track record in general of industries where long-established players find that they have to become software companies and put out a polished product there, in addition to whatever they were already doing,…
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.
As noted elsewhere in this thread, the alternative is a shortage—that is, not being able to acquire it for any price. Wanting to make a good or service unavailable to anyone at any price is... odd.
See http://www.econtalk.org/archives/2007/01/munger_on_price_1.h... for more.
Earlier quoted context omitted.
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.
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. As noted elsewhere in this thread, the alternative is a shortage—that is, not being able to acquire it for any price. Wanting to make a good or service unavailable to anyone at any price is... odd. See http://www.econtalk.org/archives/2007/01/munger_on_price_1.h... for more.
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I will accept Uber's argument when they zero their own commission (or perhaps lower it to whatever it costs to keep the lights on) whenever surge pricing is in effect. Then they have the ability to say, "we're also suffering here". Right now, they make more money when surge pricing is in effect and, since I don't have a view into the algorithms, I can't rule out that they more aggressively surge-price than is reasona…
"If it's 20 seconds, then that's a case of me getting screwed for a minor convenience priced unreasonably." Wow, you must be REALLY fun to stand behind in line at the coffee shop. "WADDYA MEAN $3 FOR THIS COFFEE? I COULD HAVE MADE IT FOR 10 CENTS! WHY ARE YOU SCREWING ME?" For reference, "getting screwed" would be what was happening if surge pricing was applied when you got out of the cab without your knowledge - not…
Earlier quoted context omitted.
That's a lot of "eventually." Uber is a software company that runs cabs, basically. Their competitors - the old school, that is - are cab companies who are now faced with the challenge of writing good software. The track record in general of industries where long-established players find that they have to become software companies and put out a polished product there, in addition to whatever they were already doing,…
Why couldn't some software company license out their app to cab companies? The Uber app is slick, but it's not exactly groundbreaking tech--somebody could clone it.
Earlier quoted context omitted.
That's a lot of "eventually." Uber is a software company that runs cabs, basically. Their competitors - the old school, that is - are cab companies who are now faced with the challenge of writing good software. The track record in general of industries where long-established players find that they have to become software companies and put out a polished product there, in addition to whatever they were already doing,…
Why couldn't some software company license out their app to cab companies? The Uber app is slick, but it's not exactly groundbreaking tech--somebody could clone it.
Earlier quoted context omitted.
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. As noted elsewhere in this thread, the alternative is a shortage—that is, not being able to acquire it for any price. Wanting to make a good or service unavailable to anyone at any price is... odd. See http://www.econtalk.org/archives/2007/01/munger_on_price_1.h... for more.
A shortage for everybody is more fair than a shortage just for those who aren't able to pay.
Laws against price gouging are almost always against the public interest.
The main selling point of Uber is the app--but eventually Yellow Cab, et al will also have slick apps. What's the long term competitive advantage, besides evading regulation? Self driving cars, most likely.
* no money exchange in the car * tip is decided and built-in * cleaner more comfortable cars * polite and professional-acting drivers
I get none of these from 99% of cabs. And even UberX is superior to the average cab experience.
The app is nice, but if the service sucked it wouldn't be enough to convince me to use Uber.