Should Uber Cap Its Surge Pricing?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Jan. 2 (Bloomberg) -- Matt Miller reports on Uber's New Year's Eve surge pricing on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

They would have to pay more for a ride home during peak hours, but the complaints are rolling in on twitter.

Matt miller is following the story from new york.

Uber warned passengers in advance that raising would be in effect.

You do have to agree to search pricing before you take a ride.

Is this unfair?

Not at all.

I would question the intelligence of people who are concerned about this, although i think people are intelligent in different ways, so i will not do so.

It tells you on the screen the exact amount.

Search pricing that you will experience on the right you are about to take.

You have to not only agree to it, but you have to type in the number so that you are aware.

Unless you are a robot, you have to process this information before you get in the car and agreed to pay the fare.

If you have an issue with that, why wouldn't you travel in a different way?

I went out on new year's eve, used ht ethe mta, taxis, the car service we have here at bloomberg, and i paid for all of those things.

Knowing full well that uber was doing search pricing, i took different modes of transportation.

I do not know why it is hard to make those decisions, or that you can regret something you agreed to doing ahead of time anyway.

It does not make much sense to me at all.

Prices were definitely cheaper if you hold the different people across the board, other applications, other than uber.

Why can't uber consider something like that, capping the price as opposed to the usual price?

The great thing about the lyft policy is that the extra charge goes directly to the driver.

The problem is not that uber or that its new competitors you searching, but the problem is that not everyone uses search pricing.

If all modes of transportation we used had surge pricing, it would drive up the supply of people willing to drive in those times and drive down the demand of people willing to pay money to take that kind of transportation.

Surge pricing that you would get would be 1.1, 1.2, rather than three times or seven times.

If everyone used this economic model, things would work out a lot better.

Uber has been tweeting back at some of these complaining passengers.

I would not quite call them apologies because they basically say, we warned you.

Do you think there is a tone deafness coming from uber?

This is a real sticker shock when you look at these receipts.

No.

you do not get the shock when you get the receipt, you see it before you book the car.

I saw one guy saying he was an mba, from harvard, whatever.

There are other modes of transportation in boston to take advantage of.

You do not have to use uber just because it is cool and then get

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change