So says the law of supply and demand.
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It depends on how elastic the supply is.
End of conversation
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Yes but supply in this case is not very elastic, at least in the short term. The supply is capped by the amount of people registered as Uber drivers in the area. There is a price at which all of these will be active, taking customers, surge pricing above this only exploits riders
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So if Uber caps the price at the right level, they can ensure maximum supply while making sure the crisis/people’s situation is not taken advantage of by demanding disproportionately high prices.
End of conversation
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They can still pay their drivers according to demand. What they charge the customer is independent.
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Companies can "take a loss" in an emergency because they can recover those losses over time (with slight bump in pricing). Uber drivers have no margin for loss OR for recovery because they can't control prices (but Uber still makes it's money regardless).
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