# 2X CAP ON SURGE COULD EFFECT UBER'S STOCK



## John_in_NY (Oct 22, 2016)

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?


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## Uber1111uber (Oct 21, 2017)

Then how does lyft explain it? Bc last sat night they weren't paying drivers more during bar close but charging customers more what a scumbag move


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## Fozzie (Aug 11, 2018)

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.


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## Matt Uterak (Jul 28, 2015)

Surge is price gouging. 

That is independent of anything else.


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## Michael1230nj (Jun 23, 2017)

Actually, it’s very effective Price Gouging.


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## No Prisoners (Mar 21, 2019)

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.


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## nouberipo (Jul 24, 2018)

John_in_NY said:


> 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.
> 
> ...


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?


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## jgiun1 (Oct 16, 2017)

nouberipo said:


> 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


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## Nats121 (Jul 19, 2017)

Fozzie said:


> 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.


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## BigRedDriver (Nov 28, 2018)

John_in_NY said:


> 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 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?


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## TheDevilisaParttimer (Jan 2, 2019)

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.


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## ANT 7 (Oct 14, 2018)

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


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## hayjude50 (Feb 9, 2019)

John_in_NY said:


> 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.
> 
> ...


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


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## John_in_NY (Oct 22, 2016)

BigRedDriver said:


> 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?


A taxi ride.


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## Michael1230nj (Jun 23, 2017)

Lose a Billion here and a Billion there it starts adding up.


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## TampaGuy (Feb 18, 2019)

John_in_NY said:


> 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.
> 
> ...


It is simple business. Supply and demand. Not gouging.


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## Michael1230nj (Jun 23, 2017)

If you enter a store and only One container of milk remains can you raise the price?


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## TampaGuy (Feb 18, 2019)

You do not understand basic economics. Did you go to college? If so, ask for your money back.


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## No Prisoners (Mar 21, 2019)

TheDevilisaParttimer said:


> 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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## BigRedDriver (Nov 28, 2018)

Michael1230nj said:


> If you enter a store and only One container of milk remains can you raise the price?


Sure can



John_in_NY said:


> A taxi ride.


Taxi demand is way down.


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## nosurgenodrive (May 13, 2019)

affect


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## Boca Ratman (Jun 6, 2018)

Matt Uterak said:


> Surge is price gouging.
> 
> That is independent of anything else.


No it is not.

Airlines charge more during busy travel times. Hotels raise their prices during events, holidays. Car rental places do the same. How much did the florist charge for a dozens Roses the day before mothers day? How much today?


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## Atom guy (Jul 27, 2016)

Surge is no longer a measure of a mismatch between driver availability and demand. That was originally the whole point of surge - to either convince more drivers to come online or to scare away some passengers so supply=demand. Now it's just a way to gouge passengers for pure profit.

There is nothing wrong with dynamic pricing - airlines, power companies etc use it to charge more during peak times. But Uber and Lyft have gotten away from doing strictly that, instead using surge pricing to gouge the passengers.


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## Roadmasta (Aug 4, 2017)

It's not worth driving until it gets to 2x. Raise prices in small increments. They need to stop all the nonsense with promotions to riders.


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## Trafficat (Dec 19, 2016)

John_in_NY said:


> 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.
> 
> ...


The marxist price gouging theories just make everyone suffer in the name of "fairness".

Set the prices as high as the market will bear. It is better for everyone. Those who can afford a ride at a lower price will get a lower price faster when those who can afford a higher price ride are allowed to pay more for the privilege of getting a ride first.

There is nothing unfair in my opinion about letting those who are more willing to spend more money have FIRST CHOICE.

Just like in a natural disaster... poor people get water SOONER when RICH PEOPLE buy water first at a premium. Why? Because if I live 100 miles away, and have a bunch of water, I only bring it in if I can profit. But if I have some left over after selling it all to the rich folks, I might leave some behind at a lower price rather than cart it back home with me uselessly. But if I had to sell water for less than the gas to get there, I never would have come.

Without price gouging laws, the rich man gets his water in an hour as pickup trucks with gallon jugs stream across the border, the middle class man gets his water tomorrow morning, and the poor man gets his water tomorrow afternoon. With price gouging laws in full force, the rich and poor alike don't get clean water for days because the police are seizing the water at the border from "price gougers" (aka Merchants) instead of helping people, and water doesn't arrive until the government water tanker comes.

A simple ECON 101 class will tell you that rules against "price gouging" make everyone suffer in the name of preventing privilege to the rich.


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## Roadmasta (Aug 4, 2017)

If they put a cap on people like myself will choose not to drive. Bad weather, riders will get a message no cars available.


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## wicked (Sep 24, 2017)

It absolutely is fraudulent if they bill it as getting more drivers on the road but it no longer serves that purpose.


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## Seamus (Jun 21, 2018)

Understand that many riders that have been using U/L (especially the bar crowd) for awhile have already found a couple ways to easily beat the surge. As a rider I can totally avoid paying a surge.

When drivers are getting great surge money It used to annoy the hell out of me how easily a surge can be beat. In my market we still get the multiplier surge (but less of them due to oversatuation) but who knows for how long. I would never tell anyone how to do it. 

If I was in a different market getting the flat surge where U/L keep most of it and throws a few crumbs to the driver I would have a different attitude.


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