In the article, “Everyone Hates Uber’s Surge Pricing – Here’s How to Fix It” by Utpal M. Dholakia, the writer addresses how Uber increases its usual fare prices using a multiplier to counteract a scarcity of drivers available, this is known as surge pricing. The article discusses how using microeconomics, Uber creates a market price for drivers and riders to calculate surge prices while also giving insight as to how Uber could make surge pricing more appealing to the consumer. Although the goal of surge pricing is mainly to bring an “equilibrium price” between the supply of drivers and the demand of riders, most consumers are uncertain as to what actual influences the price fluctuation.
The thesis of this article explains that despite surge pricing achieving the goal that it’s supposed to, (bring more drivers online and present available services to consumers who need them the most) most believe Uber is taking advantage of customers by using extreme multiplier prices. While the author states that this issue between price and product/service is giving Uber a relative degree of bad press, he also gives solutions as to how to fix this problem.
A key fact presented in the article is that the surge multiplier is basically a black box because no one outside of Uber actually knows how high prices will go, or
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The article doesn’t bash Uber for using surge pricing, however its state how they can improve the perception of the larger fares by something as simple as letting the rider know the utility they received because they chose Uber’s services. This article is extremely well written and states its purpose so that the reader can understand it easily. Because this article has some interesting ideas regarding Uber I would recommend this article to others. The marketplace for Uber is expanding greatly so I believe this is an extremely relevant
“It’s a simple experience and a much more pleasant way to get a ride than stepping onto a busy street and waving at oncoming traffic” (Stone, 2014, p. 53). It is convenient for both the employee and customer to arrange a ride, which makes Uber preferable. Additionally, the employees of Uber are given more benefits than the employees of taxi companies. For example, Uber issues an iPhone with the Uber software, free gear to secure it to their windshield and an hour of orientation (Stone, 2014, p. 52). It is this simplicity that appeals to people seeking employment. They are also using a platform that is accessible to many of their customers, because, as of 2015, “64% of American adults now own a smartphone of some kind” (Smith, 2015). Since their focus is on luxury, innovation, and results, they have transformed the public transportation system in their favor.
Increasing productivity allows more passengers to be served with the same level of resources; saving the agency money. Third, the cost pressure has led to reduced focus on regulatory compliance, which has opened the door to the use of non-traditional service providers, such as taxis, Uber, and Lyft to minimize capital and operating costs.
People have selective exposure, meaning that they won’t want their experiences to be pointless and irrelevant. If they already don’t, you will need people to understand that having Uber and Lyft back in Austin will be beneficial. One thing is obviously proximity. Proximity will tend to make people more likely to expose themselves to it. Therefore, if Uber and Lyft were brought back, people would use it. Another factor to consider is that Austin has a great nightlife and tourist scene. It would be safer, more convenient, and valuable to those who participate in these scenes to have someone to drive them around safely. People in Austin and tourists from outside of town have already been involved
Most of these people have cars or other forms of transportation. She points out that when unemployment rates rise and the gas prices increase, “privileged commuters” turn to public transportation. She suggests that they are white, but who is to say they also could be people of color. There is also the possibility of location, location, location as a drawback. The bus might not have effective ways to make stops to accommodate many potential riders, leaving them without many options to get places but to have a car.
If Southwest decided that they needed to increase their revenue they would have to start by raising the prices of their tickets. The need for increased revenue would need to be passed on to the consumers’. When a ticket price is higher with one airline than the other, the customer
This speech well explained the advantages of using Uber. It used a lot of evidence to explain why use Uber can reduce CO2, save more space, save people more time. Those facts will attract more people’s attention, so more people will try to take Uber. However, it spend too much time on the history of Jitney, and the fact that Jitney eventually failed. Uber and Jitney are actually the same thing, and the failure of Jitney will make people start to wonder if Uber will fail too. However, the advantage of Uber is strong, and attractive. Overall, this is a good
Missouri's governor, Eric Greitens, signed a bill “paving a road” for new transportation companies to easily operate statewide and supersede local fees and regulations. This doctrine will result in more jobs and will benefit the economy. Specifically, numerous Missourians will have a steady and good job as a Uber or Lyft driver since this will become an official job. With more jobs, Missouri will overcome unemployment, job loss, and destitution. These positive effects on Missouri will make other states consider passing this law. Uber and Lyft will now setup a statewide regulatory standards for the companies and their part-time, independent-operator drivers. Andy Hung, Missouri's Uber manager, is now creating more app-based services due to their
An issue that is hotly debated is should UberX be allowed in Toronto. Some think that yes, UberX should be allowed in Toronto but others think that it should not be allowed. Yes I know UberX has been legalized, but this argument is fighting against the legalization. It is clear that overall UberX should not be allowed in Toronto. More Toronto citizens are disregarding UberX. People have realized that though the rates may be low the risk of something happening is high, because UberX’s drivers are untrained and background checks are limited. Although UberX’s rates may be low, the can spike up in times of high demand. During storms and rush hour the fair can double, even triple in cost. The finally reason is that the low rates are unfair to other cab companies, because other cab companies actually hire people as a job, UberX is just for people who want to make extra money.
Employment received a hard hit by the recession, but this “gig economy” has been able to provide job openings that are in need. According to a recent study, jobs in the gig economy has grown from 9 to 14% from 2002 to 2014, compared to overall employment which only grew around 7%. Moreover, the gig economy has also had an impact in the current economy, specifically coming from the famous startups such as Uber and Lyft. The Uber and
Uber’s driverless car is a new step on auto history. People hold different view about the driverless car. Some of them think it is a great invention because it could help a city to change its stereotyped image, like the mayor of Pittsburgh(2016, Kang). At the same time, the regular cars have many issues caused by Uber’s drivers, such as assaulting/harassing female customers, even kidnapping (2014, PICCHI). S[BT2] urely, pessimists opine driverless cars do not have human’s moral rules to judge various situations (2017, O’brien).
Uber has widely known for its lower transaction costs which is resulted from efficiency in operation cost, or in other word low labor cost. Uber drivers is not the company’s employees but independent contractor. Therefore, Uber has been criticized for their treatment to the individuals who provide the service under their smartphone applications and take benefits from them (Dyal-Chand, 2015). Average hourly wages for drivers is around USD8 – 10, exclude their car depreciation (Weber and Silverman, 2015). Therefore, Uber transfers part of operation cost such as vehicle depreciation cost and employee benefits to the drivers as its independent contractor. In her note, Posen comprehensively describes and analyzes the lawsuits from taxi industry and states where it operate. Unfortunately, she only provide a glimpse about the lawsuits from Uber’s drivers without any solution to be
They are considering disruptors in the electric car market. With their advance innovation and stylish design, many consumers are willing to pay high price for Tesla performance car. Tesla has place themselves as a luxury brand with many consumers waiting for their new released backed order products.
If the demand from these customers’ change, then Uber will be forced to evolve to retain the customer segment, while adapting to the new segment. According to Anne Freier, in her article “Uber usage statistics and revenue” on Business of Apps, Uber currently offers their service to sixty countries, have eight million users, and give over one million rides daily.1 By offering more specialized rides Uber is trying to gain a larger market share and customize the experience to their customers. They are continuing to expand
We live in a technology driven world, almost everyone own a smartphone today. Uber and its competitors are allowing us to use an app on our smartphone to call for a cab. When a rider request a ride, the app gives you an estimated time of when the driver will arrive. It also calculates the fare and take the money out of your account. Whoever came up with the Uber idea is genius. Uber is beneficial to both the riders and the drivers. Uber created jobs for a lot of individuals, also for people who has a job but want to make extra money can drive Uber. The riders get high quality service for a fair price. In addition, the Uber app is easy to use and to understand. Increasing the amount of cars on the road results in faster pickup time which is
Uber is an innovative company that operates as a transportation company and a food delivery service around the globe. In addition, Uber is a company that was invented five years ago. Furthermore, during Uber’s early stages of development, the servicing company was referred to as “UberCAb”. Then an individual in San Francisco had decided to try out their service. From the individual’s first experience, the individual was very impressed. In addition, from that point, the company referred to as “UberCab” became commonly known as Uber. Also, Uber operates their service business in fifty eight different countries and have allocated over $60 billion in revenue. Uber faces many issues in their human resources operations implementation regarding drivers and internal employees.