Uber’s Surge Pricing Is Great

Using the phrase “price gouging” is an indicator of economic ignorance. But the furore over car service Uber’s “surge pricing” where fares increase as much as 8x on really busy nights such as when a snowstorm hits New York City is childish.

If you don’t like the price of something, don’t engage in the transaction! The price is the price. If you don’t like it, find another way to get home. Uber is not forcing people at gunpoint to pay 7-8x what the “normal” fare is when supply is restricted or demand is really high – like on New Year’s Eve.

If you don’t like “surge pricing” walk, take the bus, try to “hail a cab” – but don’t start calling for price restrictions. They never work, they lead to shortages and when you really want to get home in a snowstorm and are prepared to pay a premium to do so you won’t be able to because the potential fare on offer isn’t high enough to induce the cab driver to keep working.

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