Does Uber’s Surge Pricing Make DC Metro Outage Worse?

business_ethics_highlights_2Whatever one thinks of Uber, in general, its surge pricing model does three things that make it not ‘simply a form of price gouging’: (i) it rations the available supply of Uber drivers; (ii) it incentivizes off-duty Uber drivers to come on-duty; and (iii) it incentivizes would-be Uber riders to be resourceful in finding substitutes for both the missing Metro and for Uber (e.g., ride-sharing), rather than waiting (i.e., queuing). All of these are pro-social and serve to minimize the disruptions of a spike in demand. >>>

What happens when Metro’s down? $34 for a three-mile Uber ride.

Metro said tens of thousands of riders were impacted by the outage.

Uber’s price model is based off surge pricing — a tactic that has proven controversial during emergencies, with many saying it’s simply a form of price gouging.


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