How Uber screws everyone

Juggalo9er

Well-Known Member
Ever look at what a rider pays and think...I know they paid surge prices but I didn't see a surge... Turns out..

 

ANT 7

Well-Known Member
If you are a rider as I also am, try this trick. It works about 35% of the time.

When you are punching your way thru the app you will come to the screen with the prices and car selections.

Now, human nature dictates that you will "probably" hit one of them within 1-2 seconds, just like you did with the rest of the taps you had to make in the app.

Don't do it.

Wait 15 seconds.

About 35% of the time the screen will refresh and the prices will drop dramatically.
 

Juggalo9er

Well-Known Member
  • Thread Starter Thread Starter
  • #3
If you are a rider as I also am, try this trick. It works about 35% of the time.

When you are punching your way thru the app you will come to the screen with the prices and car selections.

Now, human nature dictates that you will "probably" hit one of them within 1-2 seconds, just like you did with the rest of the taps you had to make in the app.

Don't do it.

Wait 15 seconds.

About 35% of the time the screen will refresh and the prices will drop dramatically.
Surge is one thing, ripping people off is another
 

goneubering

Well-Known Member
If you are a rider as I also am, try this trick. It works about 35% of the time.

When you are punching your way thru the app you will come to the screen with the prices and car selections.

Now, human nature dictates that you will "probably" hit one of them within 1-2 seconds, just like you did with the rest of the taps you had to make in the app.

Don't do it.

Wait 15 seconds.

About 35% of the time the screen will refresh and the prices will drop dramatically.
Thx!!!!
 

The Gift of Fish

Well-Known Member
Ever look at what a rider pays and think...I know they paid surge prices but I didn't see a surge... Turns out..

"Uber charges more if they think you're willing to pay more"

WTF?!?! Where did they find this genius? Is a there a village somewhere missing its idiot?

Of course companies raise and lower their prices according to demand. Maybe the author has never tried to book a flight at Thanksgiving or Christmas, or tried to book a hotel room at a beach resort in summer. Or taken advantage of the January sales when stores urgently want to get people back inside and spending again.

What a doofus.
 

Disgusted Driver

Well-Known Member
"Uber charges more if they think you're willing to pay more"

WTF?!?! Where did they find this genius? Is a there a village somewhere missing its idiot?

Of course companies raise and lower their prices according to demand. Maybe the author has never tried to book a flight at Thanksgiving or Christmas, or tried to book a hotel room at a beach resort in summer. Or taken advantage of the January sales when stores urgently want to get people back inside and spending again.

What a doofus.
They are not talking about demand, sure demand pricing has been around since the year of the flood. What's different is that it's based on the individual pax's history and data. Even though they claim they aren't they could be looking at your battery level or even the model of phone you use to determine affluence. Uber admitted in an article to using your address as a basis for rates. It's the basis of charging what they thing a particular user will bear that's of interest here, each pax is not seeing the same price.
 

The Gift of Fish

Well-Known Member
They are not talking about demand, sure demand pricing has been around since the year of the flood.
The author is indeed talking precisely about demand. From the article:

The results of the determining get incorporated into demand predictions by micro-segments and ultimately determines what price to set the ride at each time.

As the article says, it's just market segmentation and demand analysis taken to a micro, granular level. Demand quantification doesn't only have to be at the macro level. It can be at the individual level.

And yes, lots of companies offer different prices to different customers at different times. This is nothing new. When you fly on a plane it's almost certain that the person sitting next to you paid a different price from you, and from the person sitting next to them. Companies have long used focused marketing and pricing strategies. They may offer discounts via the medium of coupons in publications that reach a specific audience. Other companies may sell the same product to different consumer groups at different prices, depending on how much they think the customer will pay.

What Uber does do is undertake price and marketing focusing to a very granular level and tailor it to the individual. But so do lots of other web-based companies, and Uber was by no means the first.

Anyway, my point was that the article's headline about a company charging more to customers who will pay more is nothing more than market segmentation. It's marketing 101 and covered in the first semester of business courses. All too often these "journalists" make basic, basic observations about UberLyft's business practices and then trumpet about it in their publications as if they've just discovered gravity.
 
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Driver--

New Member
its
Ever look at what a rider pays and think...I know they paid surge prices but I didn't see a surge... Turns out..

only a matter of time before uber takes advantage of the passengers also if they can get away with it.They are only currently focussing on growing the company and increasing revenues and decreasing the losses for the upcoming ipo!
 

CTK

Well-Known Member
Ever look at what a rider pays and think...I know they paid surge prices but I didn't see a surge... Turns out..

They've been doing this since they started upfront pricing. This news is years old.
 

Driver--

New Member
yes i know.i have heard of it.its not news.i am reply to a post with my sentiments and comment
Post automatically merged:

typing error: its not new news
Post automatically merged:

yes i know.i have heard of it.its not news.i am reply to a post with my sentiments and comment
Post automatically merged:

typing error: its not new news
i am replying to a thread,a chat etc
 

Ssgcraig

Well-Known Member
They are not talking about demand, sure demand pricing has been around since the year of the flood. What's different is that it's based on the individual pax's history and data. Even though they claim they aren't they could be looking at your battery level or even the model of phone you use to determine affluence. Uber admitted in an article to using your address as a basis for rates. It's the basis of charging what they thing a particular user will bear that's of interest here, each pax is not seeing the same price.
What's different it's based on the individual history and data? What company in 2019 is not doing that? Or do you think Uber is the only doing that?
Your cell phone tracks you when it's on, all the time. That data is sold.
Uber admitted to using your address as a basis for rates? Holy cow, I think UPS does that too.
I agree that the using you cell phone data is shady, like the battery.
Determining what each user will pay is smart, not every rider is charged the same. Do some think that is not fair? What do you think you will pay for a flight if you walk up to the counter 20 min before the flight is scheduled to take off and ask for a ticket? Last minute things sometimes cost more, Uber understands that.
 

Mista T

Well-Known Member
Author
Uber is being investigatedby the DOJ for a program called Firehouse, whereby they charged individuals different rates for the same exact ride based not on supply and demand, but on the pax history of paying higher prices in the past. Blatant price discrimination.
 

The Gift of Fish

Well-Known Member
Uber is being investigatedby the DOJ for a program called Firehouse, whereby they charged individuals different rates for the same exact ride based not on supply and demand, but on the pax history of paying higher prices in the past. Blatant price discrimination.
Again, demand is indeed being used by Uber in its price setting for individual pax. There seems to be some confusion as to what demand is. It's a building block of economics, and as such its definition is uniform across sources. Investopedia defines it as:

Demand is an economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.

I think what confuses people is that they believe demand relates only to total demand, or demand trends. However, aggregate demand is simply the sum of demand from all of the individual people who want the service or good. Uber uses its information on what price an individual consumer has been willing to pay in the past to set the offer price of the ride for that person in the future. They are using their data, as the definition of demand states, to measure "a consumer's desire and willingness to pay a price".

So Uber looks at individual demand on a per-person basis. If Uber knows that a specific pax has paid $20 for the same ride into downtown 5 times in the same month, for example, it's a reasonable for Uber to predict that the demand from this pax for his next ride will also be sufficient for him/her to pay the same $20. Uber also records the prices offered to pax when the price is not accepted by the pax and the Confirm Pickup button is not pressed. If the above pax' neighbour repeatedly declines a similar ride into downtown at $20, Uber may offer this pax future rides at $17 or $18 in order to win that business.

Analysing consumer behaviour and legal price discrimination is good business sense. Illegal price discrimination involves the practice of setting unfavourable (higher) prices for people based not on their behaviour, but on their personal attributes such as race, ethnicity, gender etc, i.e. charging a white person $10 but a black person $20 for the same ride, with the price difference being due only to race. However, there is no evidence that Uber discriminates on any of these attributes. None are inputs on the sign-up form for pax when they open Uber accounts. Example: on any given day, Uber may decide that 2 unrelated people may both be willing to pay $50 to go from San Francisco Embarcadero to the airport based on their previous trips. One person may be a 90 year old black lesbian. The other person may be an 20 year old straight white man.

Uber also sets prices differently according to where the trips start and end. McDonalds may (legally) charge $5 for a Big Mac in majority-Latino Compton and $8 in majority-white Malibu. This is not illegal price discrimination against rich white folk, clearly. It's common sense to charge more to people who can and will pay more. Price differentiation is an acceptable response to buyer behaviour and demand differences between geographical areas.

Bottom line / TLDR: price discrimination based on individual buyer behaviour = legal; price discrimination based on individual buyers' personal traits = illegal.
 
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Mista T

Well-Known Member
Author
Again, demand is indeed being used by Uber in its price setting for individual pax. There seems to be some confusion as to what demand is. It's a building block of economics, and as such its definition is uniform across sources. Investopedia defines it as:

Demand is an economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.

I think what confuses people is that they believe demand relates only to total demand, or demand trends. However, aggregate demand is simply the sum of demand from all of the individual people who want the service or good. Uber uses its information on what price an individual consumer has been willing to pay in the past to set the offer price of the ride for that person in the future. They are using their data, as the definition of demand states, to measure "a consumer's desire and willingness to pay a price".

So Uber looks at individual demand on a per-person basis. If Uber knows that a specific pax has paid $20 for the same ride into downtown 5 times in the same month, for example, it's a reasonable for Uber to predict that the demand from this pax for his next ride will also be sufficient for him/her to pay the same $20. Uber also records the prices offered to pax when the price is not accepted by the pax and the Confirm Pickup button is not pressed. If the above pax' neighbour repeatedly declines a similar ride into downtown at $20, Uber may offer this pax future rides at $17 or $18 in order to win that business.

Analysing consumer behaviour and legal price discrimination is good business sense. Illegal price discrimination involves the practice of setting unfavourable (higher) prices for people based not on their behaviour, but on their personal attributes such as race, ethnicity, gender etc, i.e. charging a white person $10 but a black person $20 for the same ride, with the price difference being due only to race. However, there is no evidence that Uber discriminates on any of these attributes. None are inputs on the sign-up form for pax when they open Uber accounts. Example: on any given day, Uber may decide that 2 unrelated people may both be willing to pay $50 to go from San Francisco Embarcadero to the airport based on their previous trips. One person may be a 90 year old black lesbian. The other person may be an 20 year old straight white man.

Uber also sets prices differently according to where the trips start and end. McDonalds may (legally) charge $5 for a Big Mac in majority-Latino Compton and $8 in majority-white Malibu. This is not illegal price discrimination against rich white folk, clearly. It's common sense to charge more to people who can and will pay more. Price differentiation is an acceptable response to buyer behaviour and demand differences between geographical areas.

Bottom line / TLDR: price discrimination based on individual buyer behaviour = legal; price discrimination based on individual buyers' personal traits = illegal.
The DOJ may agree with you. Then again, they may not.
 

The Entomologist

Well-Known Member
Lol, so this is news now?

Tell that author to dig deeper:

Uber lies about car availability at the airports to make people request higher tier and pay the stupid ant who lowers his/her tier a lower fare while they collect more.

Uber mitigates no show fee loss by making the passenger (who will complain and get his money back) pay for it by increasing the fare cost by the amount of money paid to the driver on next request, lol, this stacks up to 3 times.

Uber has a record of passengers using corporate accounts and they are often charged silly prices because they know those pax could care less about their company's spendings.

The list goes on and on really, work on those 3 for now.
 

goneubering

Well-Known Member
Uber is being investigatedby the DOJ for a program called Firehouse, whereby they charged individuals different rates for the same exact ride based not on supply and demand, but on the pax history of paying higher prices in the past. Blatant price discrimination.
Not called Firehose??!!
 
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