Uber

by astanhaus

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Uber and its convenient app seems to be the best…except when you get bitten by surge pricing like Bettie did.

As an economist, I applaud Uber’s ability to adhere to the law of supply & demand.

As a customer, variable pricing for a taxi/car service is not something that usually happens and is a pain in my ass.

Unfortunately, I understand that Uber’s surge pricing is their method to ensure cars are available to all who want them, especially during two troubling situations, winter weather and party hopping.

Everyone wants a car during these times, and if Uber didn’t raise the prices, Uber would be no better than a taxi company. Meaning we would have to wait—potentially forever—for a car.

Instead, these higher than usual prices keep cars on the road during the snowier and busier than usual times.

Most companies institute surge pricing. Think: evening movie tickets are more expensive than an afternoon movie. Want to understand the logic? Here is an overview from the Washington Post.

Remember, it is always free to walk!

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

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