I agree that demand pricing has a valuable role in our economy. On the other hand, notable kindness and lack thereof can easily have significant reputation and PR effects, both positive and negative. The "Don't Be An Asshole Rule" does not seem to be about preventing demand pricing in general, but instead about the PR value and cost of such actions in the wake of a disaster. Clearly Hailo is reaping a PR payout for leveraging its infrastructure to assist Toronto residents.
The point is that Uber does not appear to have included the PR cost of surge pricing in their calculus, and subsequently tried to deny that it happened in order to recoup some of the PR losses. Perhaps they should have included an earlier human intervention option.
Comments regarding the risks drivers bear going out in a storm also merit some attention. Possible responses that come to mind easily:
* Cut the margin the company takes off the fee
* Allow drivers to enable some form of hazard rate when things get dicey
* Providing additional advice and hotlines and such things has nothing at all to do with rates, and gets PR points, if Hailo's experience is any indication
I'm sure the rest of y'all can come up with more suggestions. The point is that demand pricing is not evil, but PR costs matter.
This is the most sensible comment in the whole thread to me. PR costs should be factored in, and if I recall correctly Uber waived fees during Hurricane Sandy in the NY/NJ area last fall.
Comments
I agree that demand pricing has a valuable role in our economy. On the other hand, notable kindness and lack thereof can easily have significant reputation and PR effects, both positive and negative. The "Don't Be An Asshole Rule" does not seem to be about preventing demand pricing in general, but instead about the PR value and cost of such actions in the wake of a disaster. Clearly Hailo is reaping a PR payout for leveraging its infrastructure to assist Toronto residents.
The point is that Uber does not appear to have included the PR cost of surge pricing in their calculus, and subsequently tried to deny that it happened in order to recoup some of the PR losses. Perhaps they should have included an earlier human intervention option.
Comments regarding the risks drivers bear going out in a storm also merit some attention. Possible responses that come to mind easily:
* Cut the margin the company takes off the fee * Allow drivers to enable some form of hazard rate when things get dicey * Providing additional advice and hotlines and such things has nothing at all to do with rates, and gets PR points, if Hailo's experience is any indication
I'm sure the rest of y'all can come up with more suggestions. The point is that demand pricing is not evil, but PR costs matter.
This is the most sensible comment in the whole thread to me. PR costs should be factored in, and if I recall correctly Uber waived fees during Hurricane Sandy in the NY/NJ area last fall.