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. While many consumers don’t like Uber’s surge pricing, it can’t easily be claim

ID: 391498 • Letter: #

Question

. While many consumers don’t like Uber’s surge pricing, it can’t easily be claimed that it is price-fixing (as it is not coordinated with competitors such as Lyft), price discrimination (as all customers in a surge area are subject to the same price increase), or deceptive pricing (Uber is nothing if not obvious about the price increase). Thus, despite the negative reactions, surge pricing is legal. Do you agree that it should be legal? Build a strong case either way, depending on your feelings about surge pricing.

Explanation / Answer

I THINK SURGE PRICING IS CORRECT TO AN EXTENT AS LONG ALL THE PARTIES INVOLVED ARE SATISFIED WITH THE OUTCOME, THE PARTIES BEING

SURGE PRICING IS BASICALLY A HIKE IN PRICE AND IT WORKS WELL FOR ALL AS

DURING ODD TIMINGS SUCH AS LATE AT NIGHT OR EARLY IN THE MORNING NO CABS CAN BE FOUND AND A LOT OF PEOPLE ARE EITHER WORKING LATE AT NIGHT OR COMING FROM EVENTS AND THEY ARE DRUNK OR TIRED TO DRIVE SO UBER GIVES THE DRIVERS INCENTIVES TO DRIVE LATE AT NIGHT INORDER TO HELP SUCH PEOPLE

EVEN THE CUSTOMER IS SATISFIED AS LONG AS THEY REACH THEIR DESTINATION SAFELY AND COMFORTABLY

IT ACTS AS AN INCENTIVE FOR PEOPLE TO DRIVE AND EARN AN EXTRA INCOME, WHAT'S WRONG WITH THAT, BUT THE SURGE SHOULD ALSO BE UP TO A CERTAIN LIMIT

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