[smcmurtry]

Genuinely curious about this - why would the price swings in this case be worse than with uber? With enough drivers, I would expect prices to reach an equilibrium that depends on time of day/day of week, with highly rated drivers charging more. And even if the price swings were larger than uber's, wouldn't the prices be more optimal since they would be set by individual actors with more local info about the cost of providing the service?

[xocyabencl]

While Uber and Lyft raise prices in periods of high demand, they also subsidize rides in periods of low demand to keep a consistent quality of service. You'd have a hard time getting a network as reliable as Uber and Lyft without that subsidy.

[AntAF]

It's not uncommon to see Uber retain 75% of the fee collected these days. The subsidies are much lower and less frequent than you are probably expecting. In Los Angeles, you are talking about 1.1-2.0 subsidy on base rates in the same areas with base rates for the driver being .72/mi and .11/min.