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i_k_k | 8 months ago

I’m not a huge fan of Uber’s corporate policies in general, but help me understand what’s wrong with this. Isn’t this what any company would do: maximize revenue from customers while minimizing expenses to their suppliers? Most businesses don’t tells us how they do this.

My grocer sells me a can of beans at some price. I have no idea how they arrived at that price, how much they paid their wholesaler, or that they may have a sale on beans next week. I buy or don’t buy beans based on whether I feel they’re worth the cost. And whether I feel like beans.

discuss

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jowea|8 months ago

If I understand TFA correctly, what is going on, is that the grocer is going

* This person is wearing a suit, I'm going to charge double

* This is a regular that always buys the same thing every week, I can charge 30% more without breaking his routine

* This one is buying the ingredients for a recipe to do tonight, I can charge double more on one product because she won't want to go to another grocer just for one missing item.

Or in economic terms it is doing price discrimination to turn the consumer surplus into profit for itself. I think it's obvious why consumers wouldn't like that. Although they can also do "this one is a cheapstake with lots of free time, I have to offer a 20% discount to keep him coming"

vjvjvjvjghv|8 months ago

"* This is a regular that always buys the same thing every week, I can charge 30% more without breaking his routine"

This one is getting to me more and more. When I grew up, you got the best deals as a regular customer. Nowadays it's the opposite. Loyalty is something that can be exploited. If you don't switch insurance regularly, you are paying way too much. If you stay at a job for longer, you get paid under market. If you use a service regularly, you get charged more.

I think it's really corroding society when loyalty and trust are viewed as an exploitable weakness.

netsharc|8 months ago

Next: Cheapskate as a Service. Are you a cheapskate that can get discounts? Sign up on our app and use your "he gets great discounts" status to buy things for others, and earn a percentage of the savings!

onlyrealcuzzo|8 months ago

I think Uber sucks, but people keep using it, and seem to beg to differ.

I don't see what the problem is.

Presumably people are fine with getting "ripped off" by Uber, otherwise they wouldn't keep using Uber and paying for it.

It's not like it's some free ad-supported product that's a scourge on society where all the costs are hidden.

I avoid Uber at all costs, other people are happy to rely on it. To each their own.

Fun fact, it's very easy for apps to see what apps you have installed on your phone.

If you only have Uber installed on your phone, see what happens with future pricing when you install Lyft, Curb, Waymo, etc.

You don't even need to ever use them. Just have them installed.

jagraff|8 months ago

Groceries regularly do price discrimination (and have for a long time) via coupons. People mostly seem to be fine with it.

aunty_helen|8 months ago

Your grocer doesn’t sell the next person a can of beans at a different price though. Hey nice watch, we have a 50% on discount for you.

I use uber a lot, I’m in one right now. My partners phone consistently gets cheaper estimates.

abtinf|8 months ago

Grocers run coupons and promos to help achieve price discrimination based on purchase timing preferences.

HDThoreaun|8 months ago

> Your grocer doesn’t sell the next person a can of beans at a different price though.

Yes they do. They even do everything they can to track me so they can optimize the coupons based on the watch I wear.

kirykl|8 months ago

If the retailer is in a monopoly position and the prices are not public it may be exploitative

i_k_k|8 months ago

I’d agree - but is it? Where I live (not a top-ten US metro area) we also have Lyft and a number of traditional cab companies. Uber is big, but by no means a monopoly.

georgeecollins|8 months ago

I was thinking the same thing! Also, I have a Lyft app on my phone right next to Uber. Most places I go are served by both customers. It's easier to switch than groceries.