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Megan McArdle

Uber's Pricing Puts Economists Before Customers

Charging hundreds of dollars for a taxi in a snowstorm is good economics and bad customer service.

Last year, I wrote about Uber, the upstart car-dispatch service that is upending taxi markets around the world. At the time, I argued that Uber's biggest threat comes from regulators -- and its biggest strategic resources were its customers, whom the company had mobilized into a powerful weapon against special interests and the politicians who catered to them.

Now Uber is facing a new strategic threat from its customers.