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

Post by learc83 » Mon, May 20, 2019, 9:30 PM UTC

mikeryan wrote: post #279

learc83 wrote: post #164

Earlier quoted context omitted.

They're not just talking about how much of the fee that drivers get to keep, but the rate they charge riders. >Uber sees itself as an “agent” acting to connect the actual “merchant,” the driver, and the customer. [1] Under the theory Uber is operating on, it's weird that drivers can't directly set rates with riders. 1. https://www.marketwatch.com/story/uber-an-early-adopter-of-n...

This has no bearing on whether drivers are employees or contractors however.

Post by EGreg » Mon, May 20, 2019, 10:14 PM UTC

lisper wrote: post #240

perennate wrote: post #238

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…

Post by EGreg » Mon, May 20, 2019, 10:26 PM UTC

lisper wrote: post #284

EGreg wrote: post #283

Earlier quoted context omitted.

You are implying that some drivers arr willing to accept it, but are not accepting it. Aren’t you begging the question? How do you know this is the case?

If no drivers were willing to accept the lower rates there would be no reason for them to collude.

Post by exabrial » Mon, May 20, 2019, 11:17 PM UTC

zentiggr wrote: post #162

exabrial wrote: post #29

This is hilarious. Props to the drivers. Capitalism at it's finest: assumption of information imbalance. If uber and lyft do nothing, this behavior will autocorrect itself: expect a few drivers to rebel/revolt after the news of the behavior spreads. Keeping the secret will get harder and harder.

But it doesn't have to be secret, ad defectors only hurt themselves by accepting lower pay for the same fare. That seems like a strong incentive to play along.

Post by asdffdsa » Tue, May 21, 2019, 12:56 AM UTC