, Columnist
Uber's New Pricing Idea Is Good Theory, Risky Business
Charging well-heeled riders more is smart economics. Until they fight back.
They really don't need more of this.
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Uber has finally confirmed what many people suspected: In some cities, at least, the company is not just raising fares when the demand for rides exceeds the supply of drivers, but is also charging higher prices to customers who it thinks will be willing to pay more.
The company uses the data it collects from customers to make educated guesses about price sensitivity. It might, for example, ask more from riders traveling to and from fancy neighborhoods, or from riders who regularly depart from businesses that are likely to provide expense accounts.