Monday, December 22, 2014

Uber and the Moral Problem of Surge Pricing

Here is an interesting piece about the economics of surge pricing from an editor at the Harvard Business Review. It comes as Uber faces more outrage when, in response to the recent Sydney hostage crisis, surge pricing kicked in on Uber.

While it's easy to feel a bit cynical about the motives of a business when they promote the socially good aspects of their business practices, it's surprising to see the reality of an amoral profiteering engine, the Uber pricing algorithm. It makes you wonder, will people maintain a long term business relationship with a company that operates with no moral or ethical framework? Or, does a business need to find some mantle of good citizenship to wrap itself in lest it become a pariah?

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