Uber’s “Price Gouging” Is the Future of Business
blogs.hbr.org
Uber’s “Price Gouging” Is the Future of Business
1–10 of 24 posts
Re: Uber’s “Price Gouging” Is the Future of Business
#2It is also the past, for several hundred years now.
Re: Uber’s “Price Gouging” Is the Future of Business
#3No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an integral part of the public transportation system, even though they are privately operated. In that context, it's unfair to permit the wealthy to co-opt that infrastructure for their exclusive use, simply because they can outbid their poorer neighbors.
Re: Uber’s “Price Gouging” Is the Future of Business
#4No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an i…
If the price is artificially low taxi drivers will just stay home rather than go out and make the same amount of money as any other day while fighting traffic and dangerous road conditions.
Furthermore, getting a taxi will degenerate into a lottery of being in the right place at the right time instead of going to the highest bidder (which is much more fair and forces people to re-evaluate if they really need a taxi or if maybe they could walk)
Re: Uber’s “Price Gouging” Is the Future of Business
#5No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an i…
If you're looking for a fixed fare/cost predictability with regards to transportation, there is always the bus or subway.
This is market forces at work.
Re: Uber’s “Price Gouging” Is the Future of Business
#6No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an i…
If you think the current licensed taxi fare structure is fare, then you must have spent your entire life in wealthy neighborhoods, or you would know how difficult it is to get any taxi outside of those neighborhoods. The wealthy have already co-opted the "infrastructure" that is taxis, at least in Chicago and New York.
Re: Uber’s “Price Gouging” Is the Future of Business
#7No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an i…
If you're looking for a fixed fare/cost predictability with regards to transportation, there is always the bus or subway. This is market forces at work.
Not every city has adequate bus & subway infrastructure, sometimes taxi is the only form of transport other than private cars.
Re: Uber’s “Price Gouging” Is the Future of Business
#8No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an i…
If the price is artificially low taxi drivers will just stay home rather than go out and make the same amount of money as any other day while fighting traffic and dangerous road conditions. Furthermore, getting a taxi will degenerate into a lottery of being in the right place at the right time instead of going to the highest bidder (which is much more fair and forces people to re-evaluate if they really need a taxi o…
> make the same amount of money as any other day while fighting traffic and dangerous road conditions.
Isn't traffic already built into the metering model, as well as delays from dangerous road conditions?
And presumably, insurance prices in risk...
Re: Uber’s “Price Gouging” Is the Future of Business
#9Earlier quoted context omitted.
If the price is artificially low taxi drivers will just stay home rather than go out and make the same amount of money as any other day while fighting traffic and dangerous road conditions. Furthermore, getting a taxi will degenerate into a lottery of being in the right place at the right time instead of going to the highest bidder (which is much more fair and forces people to re-evaluate if they really need a taxi o…
> make the same amount of money as any other day while fighting traffic and dangerous road conditions. Isn't traffic already built into the metering model, as well as delays from dangerous road conditions? And presumably, insurance prices in risk...
Given how I see taxi drivers drive, I presume the per-minute rate doesn't make up for the lost fares.
I can't say I know anything about taxi insurance, but surely an accident would be a huge hassle and make the driver look bad to his company or increase his premiums?
During the taxi shortage caused by Hurricane Sandy, Uber (admittedly not the most unbiased party) claimed that doubling fares tripled the number of their drivers on the road. I don't find this implausible.
Re: Uber’s “Price Gouging” Is the Future of Business
#10No, it's not. There is nothing new or innovative about Uber's business model. Nothing. It is a gypsy taxi service, and gypsy taxis have existed for as long as taxis have existed. Licensed taxi fares are uniform for very good reason: predictability and fairness. In the long run, no one wants to risk being stranded in a snowstorm just so they can pay less on a sunnier day. And in many urban environments, taxis are an i…
If the price is artificially low taxi drivers will just stay home rather than go out and make the same amount of money as any other day while fighting traffic and dangerous road conditions. Furthermore, getting a taxi will degenerate into a lottery of being in the right place at the right time instead of going to the highest bidder (which is much more fair and forces people to re-evaluate if they really need a taxi o…
a lottery of being in the right place at the right time instead of going to the highest bidder (which is much more fair...)
A lottery where everyone has an equal chance of winning is by definition fairer than a system where 98% cannot participate because they cannot afford to.