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Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

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Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#241

Few things interesting here - One is that the workers are getting paid more per the algorithm that these companies designed to charge customers - that is, they are getting the company to facilitate higher payments but the company itself isn't being charged more! So in that case, the drivers are simply arguing that uber/lyft are artificially undervaluing their time because clearly these passengers are willing to pay 1…

I wouldn't be so convinced that passengers are willing to pay these surge prices to go home. Sure, the first time a passenger encounters this artificial surge, they're already planning on taking uber/lyft home so they'll pay it because they probably don't have another option immediately available. But the next time a passenger arrives at DCA (could be a month or two), they might remember uber/lyft is expensive when t…

100%. I fly out of DCA/IAD, and each time weigh the options of parking at the airport and taking a rideshare service. Last time I used Uber from DCA it was much more expensive than I expected, and have been parking there since.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#242
post #237

Earlier quoted context omitted.

Under the theory that Uber/Lyft employees are contractors and allowed to set prices, wouldn't coordinating ("conspiring") to do so en masse be considered price fixing? Personally I think they should be considered employees, but a pro-management federal prosecutor could make some trouble for them.

On that note, does it make a difference that they're collectively refusing work rather than collectively setting prices ? Uber and Lyft are still the ones actually setting the price. In the end I don't think it will matter, Uber and Lyft could probably code around this pretty easily if it started to affect their bottom line. When they see 100+ drivers in the same place go offline within X seconds of each other, it's…

Seems like they could just force a delay of [x] time between individual driver logins. Call it a server side issue or something and make it so each driver can only re-login once every 15 minutes. Then by the time the surge worked the drivers instigating it would be locked out of participating.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#243
post #240

Earlier quoted context omitted.

That leaving is an option is what the parent comment is saying ("refusal to work at the proposed price"). The drivers in the article are refusing to drive at the non-surge price, and when the price surges, they find the price acceptable and so take the rides. The part of parent comment that you quoted is just about how the take-it-or-leave-it nature leaves no middle ground (bidding).

But that is false. Acceptance or refusal of an offer is bidding. It's essentially an auction: Lyft/Uber asks, "Does anyone want to sell at $X? No? OK, how about $X+1?" etc. What the drivers are doing is not bidding, it is colluding to hide the true market price, i.e. what the lowest bidder would actually be willing to accept. That is illegal. Please note that my sympathies are very much with the drivers. Their situat…

I wonder why the opposite is legal. If users are willing to pay more, Uber/Lyft will not automatically offer more to the drivers. Seems like the free-market works only when it is in favour of the company arbitraging.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#244
post #240

Earlier quoted context omitted.

That leaving is an option is what the parent comment is saying ("refusal to work at the proposed price"). The drivers in the article are refusing to drive at the non-surge price, and when the price surges, they find the price acceptable and so take the rides. The part of parent comment that you quoted is just about how the take-it-or-leave-it nature leaves no middle ground (bidding).

But that is false. Acceptance or refusal of an offer is bidding. It's essentially an auction: Lyft/Uber asks, "Does anyone want to sell at $X? No? OK, how about $X+1?" etc. What the drivers are doing is not bidding, it is colluding to hide the true market price, i.e. what the lowest bidder would actually be willing to accept. That is illegal. Please note that my sympathies are very much with the drivers. Their situat…

> What the drivers are doing is not bidding, it is colluding to hide the true market price, i.e. what the lowest bidder would actually be willing to accept. That is illegal.

Is that what's happening? The drivers have no ability to coerce other drivers. It seems to me that if there were a driver willing to accept a lower price, they would do so. But not enough drivers are willing, so Uber/Lyft is forced to increase its offer.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#245

Earlier quoted context omitted.

> Really makes you long for the transparent, posted pricing of municipal taxis Did I miss a sarcasm tag?

In most cities I've been to, the local taxi service has fixed fares for trips to/from the airport.

In good cities, there's an inexpensive train or subway that goes straight to the airport.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#246
https://callaride.com is launching next month (local to the Tampa Bay, FL area only for now), and one of their key differentiators is giving drivers the ability to set their rate. There will be minimums and maximums in-place, but they will have more control than with Uber or Lyft.

Note: I am a third-party PM working with the web and mobile application teams.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#247

I've definitely experienced this at DCA, and it's worth nothing as well that it sometimes take hours to get out of the airport due to the insane traffic jams right around the terminals and in the parking garages. DCA has gone from my favorite airport to literally my least favorite over the last year or so. I've been using Dulles instead even though it's way less convenient.

DCA is also one of the easiest airports in the US to access the metro(public transit) out of the terminal. Is there a reason you just don't hop on the yellow line and get off at a less congested stop closer to your final destination?

Metro's hours are usually the problem for me, usually getting to the airport after the last train has left.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#248
post #5

I dont see how Lyft gets off calling this fraudulent. Seems to me it's the system working as intended, and as it should. Drivers dont want to drive for under a certain value, so they simply inform the app who adjusts the value to fulfill demand. Seems like its what you want to happen.

And it only works as long as all of the drivers in an area agree: one or two drivers who don't join the scheme, and it doesn't work.

If one or two drivers pick up the fair before the surge they are good for 15+ minutes of being not at the airport driving someone someplace, then the surge can just happen then after they leave.

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#249
post #59

This seems like it could also torpedo their Contractor vs. Employee argument. Contractors get to set rates, employees don't. So you can't say they're contractors AND accuse them of committing fraud when they try to set their own rates. Now if only someone would develop an app that does this for entire cities. The app could be their version of a union.

Under the theory that Uber/Lyft employees are contractors and allowed to set prices, wouldn't coordinating ("conspiring") to do so en masse be considered price fixing? Personally I think they should be considered employees, but a pro-management federal prosecutor could make some trouble for them.

Taxi Cab Drivers were not employees either.

Why do Uber and Lyft need to take on the drivers as employees all of a sudden? I'm not saying they shouldn't be, but just curious why the seemingly sudden change in opinion from some people?

Re: Uber, Lyft drivers manipulate fares at DCA causing artificial price surges

#250

Few things interesting here - One is that the workers are getting paid more per the algorithm that these companies designed to charge customers - that is, they are getting the company to facilitate higher payments but the company itself isn't being charged more! So in that case, the drivers are simply arguing that uber/lyft are artificially undervaluing their time because clearly these passengers are willing to pay 1…

I wouldn't be so convinced that passengers are willing to pay these surge prices to go home. Sure, the first time a passenger encounters this artificial surge, they're already planning on taking uber/lyft home so they'll pay it because they probably don't have another option immediately available. But the next time a passenger arrives at DCA (could be a month or two), they might remember uber/lyft is expensive when t…

Well, there's always the immediate option of a regular taxi!

But yes, sure, who knows, but isn't that the point the free market fundamentalists often make about price clearing? Supply and demand will somewhere theoretically clear each other and maybe it's always a dance around that spot, but in this case the drivers are using the algorithm to try to find the best price they can get for their service, rather than let Uber/Lyft determine it artificially.

I just don't understand why when capital sets the "price" of labor, it is considered free market ("No one forces anyone to drive for Lyft") even though many people literally have a choice between working or starving, which isn't much of a "free choice". But when labor tries mechanisms to find a new price, it's "collusion" and "gaming the system"

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After all, even in this, there is always room for "defectors" to take the passengers that wouldn't use the higher rate!

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