Uber hammered by price gouging accusations during NYC's explosion

[FrodosPet]

Source: CNBC

Javier E. David | @TeflonGeek
4 Hours Ago

Passengers attempting to hail Uber cars during New York City's explosion on Saturday night hammered the ride sharing service for its pricing policies, accusing the company of gouging customers during a dangerous incident.

As news broke that a device had detonated in the city's Chelsea section, scared passengers attempted to use their Uber apps to hail a ride home—only to be hit with notifications that demand was "off the charts."

Furious users took to Twitter to vent their frustration, which was first reported by The Sun UK. Shortly after the blast, Uber announced on the social network that it had suspended its "surge pricing," a system that has been criticized in the past by some riders.

~ snip ~

In 2014, Uber struck an agreement with New York's attorney general to limit surge pricing during natural disasters and states of emergency. Although there was no formal declaration of emergency during Saturday's explosion, a spokesperson told CNBC that the company curbed its surge pricing nonetheless, because it was warranted by the situation.

Read more: http://www.cnbc.com/2016/09/18/uber-hammered-by-price-gouging-accusations-during-nycs-explosion.html

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Getting some people to drive in normal situations without a surge is challenging. What Uber should do in these circumstances is to offer drivers a 2-3x surge rate while only charging passengers single fare.

[Eleanors38]

1. But... but marketplace! No regulation. Except by the market, and stuff.

[JCMach1]

2. Conversely...with no driver incentive

Who would actually drive into the mess.

[Xithras]

42. That, and not profiteering, is the actual reason for surge pricing.

Easiest way to explain it is to simplify it. Imagine that you have 10 square miles of city with 10 Uber drivers spaced evenly between them. Each of those drivers is getting a steady stream of customers in their area, and the customers are happy.

Suddenly, in Square Mile 8, a nightclub lets out and 5 people hail an Uber at once. The problem here is obvious...there is one Uber driver for that square mile, so four of those riders are shit outta luck. In theory the drivers from the other areas could drive over and help, but why would they? It's the same rate of pay, but it's a longer drive so they'll actually make LESS money on the fare once gas and time are factored in (the time to drive there and back is time that can't be spent carrying fares in the drivers "home" area).

So, this is where surge pricing kicks in. With five people waiting, the price for a ride spikes in that area. The drivers from other surrounding areas now see the higher fares, which makes it worthwhile for them to drive into the more congested area. Instead of avoiding these fare losing rides, they're now going to pursue them because they pay more than their home area. This increases the overall number of Uber drivers available in a high-demand situation, helping to get people out of the area more quickly.

The alternative? Without surge pricing, most drivers will just stay in their "home" areas, and riders will be forced to wait longer for rides to show up.

[JCMach1]

49. I drive in Dallas PT, I simply did not go downtown during the shootings... you risked getting you

and your vehicle trapped by jams, barricades, etc.

[Helen Borg]

3. If you desperately need something...

Theoretically the price could go up to infinity, no? Unconstrained free market does not care if you die.

[Igel]

6. Theoretically, yes.

But since we live in a real, not a theoretical, universe, the only possible answer is "no."

[GummyBearz]

21. Would you drive into a terrorism event for $10?

Do you think it is every uber drivier's mandate to do so? I sure as fuck wouldn't drive into such a thing. And if I happened to be in the middle of such a thing I wouldn't be dicking around trying to get an uber driver. One foot in front of the other as fast and as far as I can make it.

[markpkessinger]

4. Another reason this NYer is perfectly content using mass transit or plain old yellow cabs n/t

[Igel]

7. the yellow cab route is safe.

But limited. If you suddenly need 300 cabs and they're not to be found, suddenly you're in a situation where regulation and price control underestimate demand and don't provide the supply.

So the price is reasonable, but the product or service is unavailable.

I like one recommendation upthread: it treats everything as though it were a kind of public service. It's privatizing the gain and socializing the risk, but the "privatization" is the customer's and the "socializing" falls on others. That's the route all subsidies take, it's just a question of which private party loses and which private party gains.

[leftynyc]

18. That was a problem on Saturday night

Some of my friends from Chelsea were having dinner in Williamsburg when they all got the news alert on their phone. They headed for the subway where they were told there hadn't been a train in 40 minutes (that's a long time to wait for a subway). They called UBER never thinking they'd get one but it only took 5 minutes. Yellow cabs are ubiquitous in Manhattan, but not on the outer boroughs.

[elleng]

5. 'gauging customers during a dangerous incident' = capitalism,

don'tcha know? Let the market beware!

[GummyBearz]

22. Yea, uber drivers should be expected to drive into terrorism situations for $10 to pick someone up

I'm sure you would

[GummyBearz]

26. They are contractors

Contractors choose which job they want to take. I'm sorry you would need someone to rescue you, but I'm not risking my life to do it for $10. Jog on

[GummyBearz]

28. So you would risk death for someone you never met for a $10 fee

Your life is worth $10. That is all I needed to know

[GummyBearz]

31. Possibly get more dramatic?

This is a discussion board, people often argue over things... it happens. Stalking? Don't flatter yourself. I responded to your comments in one thread and you responded back. I could ask you to quit stalking me just as easily

[bucolic_frolic]

32. Is that a threat?

You tell me.

[GummyBearz]

34. No it was not

How could it possibly be a threat? It was a question which referenced your post that claimed uber drivers have a responsibility to risk their life for a $10 fare. This is getting so tedious... try again

[bucolic_frolic]

35. I said nothing of the sort

You were the one that mentioned $10, and you mentioned uber.

I never mentioned either one.

[GummyBearz]

37. ...

You responded to the OP titled "Uber hammered by price gouging..." with a reply of:

" Libertarian Pricing

Whatever the market will bear

Survival-of-the-fittest

Cutthroat competition "

Which implies uber drivers should be going into the mayhem as if they were first responders in order to give people a $10 ride to safety. Sorry, but they have not signed up for such a thing and you did in fact imply it multiple times, by posts such as:

"It's their job, and there are some laws against price gouging during
crises of all kinds"

Are you done with your tantrum yet?

[GummyBearz]

39. I can help you with one thing

A 1 mile uber ride to get away from danger $10. Which is why I included it. You can be delusional about the rest of our discussion. Please don't threaten me with an alert though... odd you are the only one to make an actual threat in this back-and-forth, yet you questioned me about making threats. Kids these days...

[GummyBearz]

41. Good luck to you as well

[LanternWaste]

45. Sounds almost as selfish as risking death for...

"So you would risk death for someone you never met for a $10 fee..."

Sounds almost as selfish as risking death for someone you've never met for free.

[markpkessinger]

46. Calling them 'contractors' is but a convenient way to dodge livery regulations n/t

[airplaneman]

9. charge whatever the market can bear and privatize everything.

I imagine a privatized FEMA rescuing you from your house then taking your house as payment for the rescue.
-Airplane

[TeamPooka]

10. It's Uber so you're lucky if your driver doesn't assault or rape you regardless of the charges. nt

[hotdamn00]

11. Rich man can ride

and the hobo, he can drown.

[GummyBearz]

23. Or just put one foot in front of the other and get out of dodge?

[Loki Liesmith]

12. I think their algorithm does this automatically

increases price in time of high demand.

This may have been an inadvertent consequence of the algorithm.

[allan01]

13. uber is no more than a a unliensed hack. regular cabs have to be licensed why not them

[TomCADem]

14. Uber Is Not A Utility. Prices Are Set By Algorithm

If there is increased demand versus fewer available drivers, then prices go up. Sometimes, to address anticipated demand, if you are driver, they sometimes offer increased incentives, at a concert for example, to serve a venue, and the price is past on users. However, otherwise, prices are dynamically set. Now, if you like the fixed availability of a taxi stand, or the fixed rate of taxes, they are always available.

[GOLGO 13]

15. Supply & Demand at work

Uber is not a right. Check your privilege.

Get a yellow cab, limo, bus or use the subway. DEMANDING that others throw themselves into NYC streets during a crisis so that they can get to their bars before fashionably late 11:35PM is all that matters.

[Nye Bevan]

16. If you don't like the price then don't take an Uber.

My understanding is that there are other ways to get around in NYC.

[NWCorona]

17. Fuck Uber! Lyft is much better

[Nye Bevan]

19. And that's fine. Consumer choice is wonderful.

You don't like or can't find a yellow cab? Take Uber or Lyft. Hate Uber? Take Lyft. Uber too expensive? Don't take one, and if everyone agrees they will be forced to lower their prices.

[NWCorona]

20. Yup! Fair competition is key

[apnu]

25. Fuck Uber.

Totally unnecessary app. Taxis are fine, they're well regulated and well known.

Uber is the definition of uncertainty, unnecessary, and generally, breaking something that was already fixed.

[Nye Bevan]

30. Ever needed to get from one obscure part of Brooklyn to another?

I'm guessing not.

[apnu]

47. No but I do have to get from one obscure part of Chicago to another

And taxis are just fine for that here.

[GummyBearz]

43. Because the last time I needed a taxi away from down town, one was right there!

Oh wait, no, that was an uber driver

[GummyBearz]

44. Fuck taxis

Number of times taxi drivers pulled shady shit on me: 3
Number of times uber drivers pulled shady shit on me: 0

Yes, I would prefer to take an uber in a well kept car with someone who is just doing it for extra money. The last taxi I took, the driver would not take my credit card, despite having the sticker in his window that he accepts visa/mastercard/etc. He claimed his card reader was broken. He wouldn't let me out, then drove me to an ATM which wasn't even my bank, so I had to pay extra to get the cash for him. Fuck that shit. I wish I had just fought the fucking prick than doing that. I am ashamed I let myself get extorted by that taxi driver. The main problem is the fucker knew where I lived.

Another good lesson: have taxi drivers drop you off a block away from your residence just in case they try to kidnap/extort you. Being in the back seat means you can wrap your main arm around their neck and choke them out, and they wont know which house you live in. Fuck asshole taxi drivers

[Nye Bevan]

48. Credit card readers in taxicabs are by far the most unreliable devices in the world,

judging by how frequently they are "broken". In my experience they only seem to be working about a third of the time.

[Me.]

36. Meanwhile

“The Standard High Line hotel is offering Chelsea residents who live near the site of Saturday’s bombing a special offer.

Residents of 23rd Street between Sixth and Seventh avenues who can provide proof of residence can have a free night Sunday at the hotel, located at 848 Washington St.

The guests will also get a free dinner, up to $150, at the hotel’s restaurant, the Standard Grill, and two tickets to nearby Standard Beer Garden.

“We try to be as neighborly as possible,” an employee at the hotel said. “People need help.”

http://www.amny.com/news/residents-near-chelsea-bombing-offered-free-night-at-standard-high-line-hotel-1.12333541