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Uber drivers gang up to cause surge pricing, research says

telegraph.co.uk

171–177 of 177 posts

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

#171

During a fare, an uber driver told me that when he goes to an area with lots of drivers, he will turn off his app for a minute or so to artificially decrease the number of drivers in the area. If this is practiced by multiple drivers repeatedly, the result can cause a surge. He told me that he does this, and, that he holds training sessions where he teaches this practice to other drivers, among other things. I do not…

This is easy for Uber to fix. The surge (or the calculation of drivers) just needs to be delayed by 15mins or so. He can still turn off his app, but now he'll have to do it for more than 15mins, thus potentially losing 1 or 2 rides.

Or they can have people go through the driver onboarding, google for stuff like that, and then ban teachers of this stuff when they find out about it.

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

#172
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 star…

... Americans don't deserve the telephone.

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

#173
post #51

I am currently talking with Warren Mosler about implementing Unconditional Basic Income in local communities (Hi @sama! :) Cartels is the main danger with unconditional basic income. If you make sure everyone can eat, you create a moral hazard, where the insured are not sensitive to price anymore. Having said that, we already have means-tested welfare and food stamps, and cartels of fruit stores don't spontaneously a…

My go-to example (of the dangers of cartels extracting the added UBI) is the time they bought out a bridge to remove the tolls and then landlords raised rents by the exact cost of twice-daily crossings. (Of course, I've never researched the purported event itself.)

Any UBI plan needs to come with a firm understanding of this dynamic and how to prevent it.

Search for "bridge":

http://www.landvaluetax.org/current-affairs-comment/winston-...

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

#174
post #91

Earlier quoted context omitted.

Uber presumably takes a fixed cut of the fare, so they have at least some incentive to look the other way during surge collusion. If the drivers do it simultaneously to both Lyft and Uber then both companies will be happy to see this going on.

As far as I know, Uber does not take a cut on surge pricing. The extra money goes straight to the driver.

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

#175
post #152

Earlier quoted context omitted.

Well, if you talk about Bitcoin etc., it's a gold rush situation - high risk/high reward situation which is strictly voluntary, so I see zero issue with that, on the contrary, I see it as excellent experiment which, unlike many other social experiments, won't bother you at all unless you opt in. With Uber/Lyft it's trickier since while you are welcome to not use it, it may have implications which are beyond direct us…

I'd say the big externalities affecting non-customers are increased congestion and a questionable insurance arrangement. There are also the handful of cases of sexual assault and similar that have happened that arguably could have been avoided with background checks, but perhaps the incidence of these is small enough that you could write it off.

Is there really big change in congestion? If not Uber, people would take a taxi or drive themselves - that's what I'd do. Both cases don't reduce congestion.

As for insurance, there are tons of people on the road with bad insurance, at least for Uber as I understand you have something to back it up.

As for assaults and other bad apples, that could have happened with taxi too. I don't believe any company of these proportions could have checks that could 100% prevent such cases. I'm not sure it's possible in even in principle...

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

#176

Earlier quoted context omitted.

Why would Uber do anything about it? Its in Uber's interests to not solve it. They get more money no? Same with its competitor in India, Ola.

This will be beneficial up to some point in the future, when riders decide to boycott Uber.

Well, this driver behavior will exist in all platforms and won't be in any platform's interest to solve it. Be it Uber, Lyft, Ola, Grab etc.

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

#177
post #127

Earlier quoted context omitted.

So true. Good luck getting a driver to pick you up around Wacker. Upper/lower confuses the heck out of the uninitiated.

I would normally assume Upper. Where would one pick up passengers on Lower Wacker? (genuinely curious, not being snarky). Apart from the fact GPSes don't really work on Lower Wacker, so it's hard to nail down the pickup location on the app.

No idea, but many drivers who aren't familiar with the area just follow the GPS and end up getting lost down there.
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