Are Uber’s customers morally biased?


What Economists Don’t Get About Uber’s Surge Pricing

During Sunday’s hostage crisis in Sydney, Australia, Uber, the car service, raised its prices. The company’s algorithm does this automatically when demand increases, during, for instance, a rainstorm or on a busy night like New Year’s Eve. It’s taken heat for this practice before. But since this was a slightly different set of circumstances – a mentally unstable man had taken hostages in a cafe – surge pricing created an almost-immediate brouhaha that was just over the border into moral outrage. What’s surge pricing exactly? Here’s what the company’s website has to say: Uber rates increase to get more cars on the road and ensure reliability during the busiest times. When enough cars are on the road, prices go back down to normal levels. It’s important to know that you’ll always be notified in big, bold print if surge pricing is in effect. When rates are more than double, the surge confirmation screen also requires you to type in the specific surge multiplier to ensure you understand what rates to expect. ….[READ]


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