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posted by
martyb
on Thursday May 23 2019, @09:04PM
from the we`re-all-on-break-and-then-we`re-not dept.
from the we`re-all-on-break-and-then-we`re-not dept.
Uber drivers working at Reagan National Airport have found a way to increase their revenue by taking advantage of the "surge" pricing algorithm used by the app. By logging off and making themselves scarce as a plane full of potential riders arrives on the runway, the sharp change in the supply vs. demand of drivers and passengers causes fare prices to rise automatically. The drivers can then sign back in and snap up these gigs while the higher prices remain in effect.
https://www.zerohedge.com/news/2019-05-20/uber-lyft-drivers-game-surge-pricing-reagan-national-airport-synchronized-scheme
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Uber Drivers Coordinate App Usage to Raise Fares
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(Score: 1, Interesting) by Anonymous Coward on Thursday May 23 2019, @09:48PM (8 children)
All the research on surge pricing has found that it does not work the way the theory claims it would. Specifically that prices go up in order to attract new drives into service.
It doesn't work that way because the friction of going into service is too high. If you are ready to drive, you won't just be sitting around do nothing, you will already be driving. So when the price goes up, there is nearly zero extra supply that can get on the road in time to take advantage. At best, it attracts drives from other areas. But even that's not great because it takes them a while to drive over to the surge area, at which point the surge is typically ending or already over (and sometimes even causes a surge in the area they just left because... they just left it).
Stupid Ayn Randian techbros don't know jackshit about the real world, but they still get billions in VC money to fuck it all up.
Also this is your periodical reminder that Uber has never made a profit, and has no clear path to making a profit and typically loses billions of dollars each year on subsidizing rides.
(Score: 1, Informative) by Anonymous Coward on Thursday May 23 2019, @10:00PM (3 children)
Isn't the billions in VC money the main objective? Who wants the burden of running and growing a business when someone with pockets full of money wants to reward you before you ever turn a profit, let alone prove you can run a large company?
I say take the dump truck full of money and buy a sign for your wall that says "Mission Accomplished!"
(Score: 0) by Anonymous Coward on Thursday May 23 2019, @10:08PM (2 children)
If the rest of society wasn't collateral damage from their reindeer games, I would say great! A billionaire fool and his money should be parted as soon as possible.
But so much of the gig economy is just about extracting resources from the public sphere and transferring them to the new oligarchs at a severe discount, and in the long-run that's no good for anyone, not even the short-sighted oligarchs.
(Score: 0) by Anonymous Coward on Thursday May 23 2019, @10:45PM
What you never played "king of the cow-shit-hill"? Bonus points if you're still on top when that jerk cousin with daddy AND mommy issues drops their ciggy and burns the whole pile down.
(Score: 0) by Anonymous Coward on Friday May 24 2019, @02:52AM
Ain't that many of those, sonny, you can bet there's none and be safe.
For fools, search mom-an-pop investors, pension funds and the like.
(Score: 3, Touché) by krishnoid on Thursday May 23 2019, @11:48PM
I guess they know *something* about the real world.
(Score: 3, Interesting) by Spamalope on Friday May 24 2019, @02:13AM
Some times will regularly have higher demand. When that's predictable, higher rates can incentivize drivers to plan on working those hours and possibly commute to locations with higher paying rides. (EX: if the tourist 747s come in every Friday at 8am, and the fares go up then like clockwork - you can earn more cash if you make a point of showing up)
(I'm not saying this next bit happens, just that it can)
If there is an unexpected high demand time, you could convince potential drivers who were taking a break to drive some more for effective 'over time' pay.
Of course that's separate from gaming the system. (and if you make a game-able system, it's your fault...)
I wonder if there is any angle for riders to game the system...
(Score: 2) by canopic jug on Friday May 24 2019, @06:15AM
Another way to look at it, since it asserts that it's drivers are independent contactors, is that Uber is in the business of price fixing [jalopnik.com]. Actually, Uber claims that it is the drivers who are the customers and the passengers are the drivers' customers not Uber's. Uber's app coordinates not just the price of the drivers have to use the app itself but more so what the drivers plan to charge their own customers, the riders. The pricing of the the drivers services to the riders is thus centrally managed. That makes it rather clear what Uber is really doing when it allows a population of independent contractors to collude to raise prices: Uber is in the business of price fixing through vertical (centralized) coordination of pricing. And that is highly illegal, even under the current regime.
Money is not free speech. Elections should not be auctions.
(Score: 2) by rigrig on Friday May 24 2019, @02:48PM
That depends on which theory.
My theory is "pretending surge pricing aims to increase the number of available drivers is a great way to overcharge customers without people complaining too much."
No one remembers the singer.