2X CAP ON SURGE COULD EFFECT UBER'S STOCK

should there be 2x cap on surge pricing?


  • Total voters
    34
  • Poll closed .

John_in_NY

New Member
Don't be surprised if you start seeing attempts by persons to persuade states, like New York, to force a 50% or 2x cap on price surging.

Many people view "surging" as price gouging. Uber claims "surge pricing allows us to get more cars on the road at busy times". OOOkay, so that's price gouging. Just because Uber is a large billion dollar company, doesn't mean they can overcharge people when it's busy. Very poor business practice.

Don't try to compare with hotels and airlines.

What do you think?
 

No Prisoners

Well-Known Member
That's a tweeter campaign now asking for transparency which of course uber will deny and obstruct ferociously. Increasing rates to rides while paying drivers a fraction is evidence of price gouging. Millions of tweets influence perception and people will avoid surges as instructed by tweets. Passengers being instructed how to avoid and act accordingly.
Nevertheless, enough complaints will be picked up by media and eventually cause effect whether regulatory or simply by reduced consumption. Anyhow its just another negative perception of uber which negatively hurts the brand.
Notice how uber's growth is in downtrend while loses increasing. That's does not help valuation and that's precisely how to hit back.
Keep remembering that every point drop on uber's stock equivalent to approximately $180 valuation drop.
 

nouberipo

Well-Known Member
Don't be surprised if you start seeing attempts by persons to persuade states, like New York, to force a 50% or 2x cap on price surging.

Many people view "surging" as price gouging. Uber claims "surge pricing allows us to get more cars on the road at busy times". OOOkay, so that's price gouging. Just because Uber is a large billion dollar company, doesn't mean they can overcharge people when it's busy. Very poor business practice.

Don't try to compare with hotels and airlines.

What do you think?
Since they no longer use surge to entice drivers to get on the road but still collect the surge, that contradicts their reasoning. Surge is no longer passed on to the driver so how can they argue it’s meant to get drivers on the road?
 

jgiun1

Well-Known Member
Since they no longer use surge to entice drivers to get on the road but still collect the surge, that contradicts their reasoning. Surge is no longer passed on to the driver so how can they argue it’s meant to get drivers on the road?
Very true
 

Nats121

Well-Known Member
Since the implementation of the "flat surge" in which Uber pockets the majority of the surge amount, I'd have to classify it as price gouging as well. If it's not really going to increase availability of drivers, it's all just a scam to pad their wallets and should be regulated.
If the surge money isn't being used to get more drivers on the road, it's more than price gouging, it's FALSE ADVERTISING.
 

BigRedDriver

Well-Known Member
Don't be surprised if you start seeing attempts by persons to persuade states, like New York, to force a 50% or 2x cap on price surging.

Many people view "surging" as price gouging. Uber claims "surge pricing allows us to get more cars on the road at busy times". OOOkay, so that's price gouging. Just because Uber is a large billion dollar company, doesn't mean they can overcharge people when it's busy. Very poor business practice.

Don't try to compare with hotels and airlines.

What do you think?
Don’t need to compare hotels & airlines. Name me a single consumer item that’s high in demand, and short on supply that doesn’t go up in price.

You’ve never heard of supply & demand?
 

ANT 7

Well-Known Member
Those of you WHINING about free market demand with surge pricing obviously have never purchased a hot new consumer product......have you ?
 

hayjude50

New Member
Don't be surprised if you start seeing attempts by persons to persuade states, like New York, to force a 50% or 2x cap on price surging.

Many people view "surging" as price gouging. Uber claims "surge pricing allows us to get more cars on the road at busy times". OOOkay, so that's price gouging. Just because Uber is a large billion dollar company, doesn't mean they can overcharge people when it's busy. Very poor business practice.

Don't try to compare with hotels and airlines.

What do you think?
I had a pax tell me she had over a 100$ fare, with surge, from the northwest suburbs to the Chicago loop, during morning rush hour, on several occasions. . I looked at her pickup suburb (Arlington Hts) and there's not even a surge paid to the driver, nothing!! I wanted to puke, she was charged $108, the driver made less than 30$. Nice
 

TampaGuy

Well-Known Member
Don't be surprised if you start seeing attempts by persons to persuade states, like New York, to force a 50% or 2x cap on price surging.

Many people view "surging" as price gouging. Uber claims "surge pricing allows us to get more cars on the road at busy times". OOOkay, so that's price gouging. Just because Uber is a large billion dollar company, doesn't mean they can overcharge people when it's busy. Very poor business practice.

Don't try to compare with hotels and airlines.

What do you think?
It is simple business. Supply and demand. Not gouging.
 

No Prisoners

Well-Known Member
I believe the solution would be that Uber to be required to show a complete bill breakdown to both passenger and driver. Utterly complete transparency to all parties involved.

If most passengers realized they paid a 3x surge and their driver made normal rate there would be more class action lawsuits against Uber until they stopped.
I've had a team of over 20 university students tweeting all liberal candidates asking for transparency in billing and FEDERAL investigation on surge. Heading "uber's price gouging rides on backs of drivers." Tweets include hundreds of drivers receipts where uber consistently takes 70%+. One tweet alone retweeted 6500+times in less than a day.
Investors getting worried about potential investigations
 
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