Uber allows multiple different independent contractors to coordinate their pricing, but there is still competition in the market.
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Replying to @JeffLonsdale
In a way that is different from att allowing truckers to communicate and this form a pricing cartel? Not preventing price coordination is not the same as engaging in it.
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Replying to @Molson_Hart
Does AT&T automatically help truckers raise their rates when there are fewer of them in a given area?
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Replying to @JeffLonsdale
Nah, but that's also not a cartel. That's just a simple supply and demand function.
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Replying to @Molson_Hart
Uber’s algo is not actually a market. Many people don’t think individual businesses are supposed to explicitly coordinate like that in other industries.
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Replying to @JeffLonsdale
True, Uber's algo is not a market, but increasing prices to spur increased supply doesn't sound like a cartel or manipulation to me at all. I mean, doesn't it make sense that with taxi stock fixed, prices should rise in the rain?
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Replying to @Molson_Hart @JeffLonsdale
If Uber were coordinating this surge pricing with Lyft, I would agree with you. Or, if Uber driver's were all turning off their phones at the same time to artificially deflate supply to increase prices, yes that's price manipulation/cartel behavior.
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Replying to @Molson_Hart @JeffLonsdale
But, Uber increasing prices during high demand, low supply periods in an algorithmic way that does not explicitly involve coordination with their competitor Lyft? That's not behavior we should be regulating.
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Replying to @Molson_Hart @JeffLonsdale
Further, unlike Amazon, and unlike Facebook, Uber is a company that is not making money and actually has a somewhat meaningful competitor in most markets.
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Replying to @Molson_Hart
I am worried that you are missing the main point. What you said describes a world where Uber has employees and is not an ecosystem of independent contractors coordinating with each other.
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I might be missing the main point. I might also be wasting your time as I didn't read the article (journalists usually don't get it...). I believe Uber has independent contractors. They bring their own supplies and they work when they want to.
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Replying to @Molson_Hart @JeffLonsdale
I see nothing wrong with Uber increasing prices by 50% when its raining, for example, and then passing on some portion of that to those independent contractors who are incentivized to work at that low supply, high price time. I don't see how that's price manipulation.
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