Is $35 a Mile a Fair Price During a Snowstorm?

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Dec. 17 (Bloomberg) –- Menlo Ventures Managing Director Venky Ganeson discusses Uber, the transportation network company that connects people with drivers for hire, catching heat from customers for their pricing policy during a snowstorm. He speaks with Emily Chang and Cory Johnson on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Uber.

It may become a little feisty.

The pricing was so high, at one point it was $35 a mile, is that fair?

Fair is not the right question.

It is more important to make sure you have a car to take you home, then what it cost.

Uber pricing is to make sure that the car is on the road.

Not getting home in a snowstorm is worse.

I am asking is $35 a mile fair?

I think the question is that demand for drivers is to get on the road.

If you need someone to tell and drive, it puts them and their car at risk.

You have to give people an incentive to be out there.

The drivers are out there so you can get home safe.

Cory, is it fair to ask if it is fair when it comes to a business?

Should we be talking about the ethics of it?

Your questions or so went there, emily.

-- are so unfair, emily.

I was a taxi driver a long time ago in new york.

I was in the back of an uber car.

I left the house in a snowstorm and took a cab to my taxi.

The cap got out on fifth avenue and did a 360, spinning out onto the snow.

I said, you know what, i am not driving in this.

It is a reasonable question.

Capitalism is fair, and it is whatever your customers will pay for.

There's a bigger question here about what a developing branch chooses to do.

If a developing brand says that he will take however much money you have, and that is what this cost, that reads a different relationship with the brand.

Luber is making a calculated decision that they will not alienate people with these things.

We saw the people up and down the eastern seaboard who were dedicated to bring users were really brought up about this.

I am sure that they permanently lost some customers because of this pricing.

It is one thing to make sure that there are enough cars on the road, but it is enough -- another thing to make sure that your customers trust you.

How important is trust, and does surge pricing as high as $35 a mile?

-- undermine trust in the company?

Anyone who has ever been in on uber car knows how great it is.

You have a question of fairness, but let me ask you, there is $200,000 going towards drugs.

Is that fair?

You do not think about how much it cost, you think about the fact the you can live the next are your.

When i think about the $35, i think about the fact that i can be home with my kids, not what it costs.

I had the ceo of luber on the show recently.

Let's listen to that interview.

It depends on the particular product.

Generally, it is like 20%. you take about a 20% cut?

It depends on the product.

That is essentially the margin.

Overtakes about a 20% cut.

What about capping search pricing?

Going to-three times higher than usual, rather than 4, 5, 7. ? i don't know about pricing.

That is a decision that management makes.

They're trying to make sure that enough drivers are available stop the whole idea of capping could limit the number of drivers.

The point is, when there is a snowstorm going on, you want to get as many cars on the roads that people can go home.

The search pricing allows drivers to get back on the road.

Ex-wife can't uber pay drivers more?

Why don't they take a smaller cut?

Why doesn't the rates charged me less for new year's eve on december 31? they are not charging seven times more.

Then why are they charging $200,000 for a drug?

They should give it away for free.

The point of a capitalist system is that we need some mechanism to drive behavior.

We want to get drivers on the road.

Class cory johnson, jump in here.

I think drivers and passengers should be completely safe and not going out on the road and putting their lives at risk.

Is there a better way than this?

This is what everyone is saying off the air, i do not care about people, i only care about business.

I am always saying that on air.

But i think this is an interesting choice for the business to make.

Let me bring an example of someone who could afford on uber right.

Jessica seinfeld, the wife of jerry seinfeld, she paid $415 in an uber fair to bring her case to a bar mitzvah and drop her caps off.

Her kids were saying things like, oh my god, these people are crooks.

It is a calculated risk that the business is taking.

They are presenting a fixed price, and you know what this is false.

A mcdonald's value meal is $.99 and you know you are getting.

We will not change the price if you are more hungry.

That is one enjoys a business can make.

The use of this technology allows uber to scale production instantly in a time like a big snowstorm.

There is a risk on the backend.

Uber may incur some wrath.

Obviously, that is the choice that luber made last weekend.

Is that the right choice?

I do not want to comment on a specific situation, because i do not know.

That is not the only person who was upset.

There were many people.

There were people who took their journey and did not realize what the search pricing was.

They were not comfortable to pricing.

I am sorry they did not have a good experience.

But i -- am i glad that someone can get a driver out there?

The alternative is that nobody is out there to get you home.

You don't think there is an upper limit to how much it should cost?

I think the upper limit is decided.

Every time you go to the app you have a choice.

You can say, not for me today.

People cannot do the math in her head like that.

It does not say from point a to point b, it is a certain number of miles.

Ask if you put in the actors were you want to go, it will tell you how much it cost.

I want to have everything cheap.

I think the government should have a law that says everyone should be rich, but that is not how the capitalistic system works.

I have taken uber many times and they use it for work and other things.

Yesterday i was going from san francisco to the valley, which is a longer ride than usual.

What they do not tell you, and this is not advertised anywhere, is that if you use luber taxied to go more than 50 miles outside of severed cisco, it is 1.5% -- san francisco, it is 1.5% more expensive.

That is not advertised anywhere.

Is it fair?

It is not fair for someone to be charged for something they do not know the charge for.

A lot of times, there is user error and people do not realize it.

The company is trying to do a better job of making sure.

Or their mistakes?

Sure.

Am i sorry you did not have a good experience?

Yes.

But i'm trying to make sure that in situations where there are available, and there've been plenty of times in new york or san francisco were there no option to get me home, i can use this as an option to get me home.

Luber has make in my life easier in a lot of ways.

But there have been times when i have run into problems.

I am a big uber user as well.

It has made my wallet thinner.

These are the kind of problems that were possible even a couple of years ago when prediction -- production of physical things, or the supply of physical things was greatly changed on a real- time basis.

Businesses are struggling like this in trying to figure out how to provide the consumer -- if there are a lot of buyers for the stock price, it goes up.

I think this reaction people had to these prices in some way shows how much their affection for uber is.

Cory johnson, our editor at large.

Thank you for coming in and

This text has been automatically generated. It may not be 100% accurate.

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