Uber-Efficient or Uber-Obnoxious: How Much Would You Pay for a Cab?

This week, the Planet Money podcast discussed the Uber app and surge pricing.  The Uber app permits pedestrian in need of a cab during rush hour to attain one, albeit for an increased price.  

Here is a description of the podcast: 

Here’s the scenario: A man and his wife are desperate to get to the hospital because she is about to deliver a baby. It’s a hot summer day. It’s rush hour. They flag down a private car and ask, “How much?” To their surprise the driver wants to charge them four times the normal price of a cab.

So, is this a story about a cabbie taking advantage of a vulnerable couple or is it simply good economics?

Today, we are talking about a company that charges people in desperate situations more for a ride, and we’ll consider the argument that it might actually be better for everyone.

Uber-Efficient or Uber-Obnoxious: How Much Would You Pay for a Cab?

This week, the Planet Money podcast discussed the Uber app and surge pricing.  The Uber app permits pedestrian in need of a cab during rush hour to attain one, albeit for an increased price.  

Here is a description of the podcast: 

Here’s the scenario: A man and his wife are desperate to get to the hospital because she is about to deliver a baby. It’s a hot summer day. It’s rush hour. They flag down a private car and ask, “How much?” To their surprise the driver wants to charge them four times the normal price of a cab.

So, is this a story about a cabbie taking advantage of a vulnerable couple or is it simply good economics?

Today, we are talking about a company that charges people in desperate situations more for a ride, and we’ll consider the argument that it might actually be better for everyone.