mrswdk wrote:'Using an Uber has greater utlity than walking home' may well be true but that's not the point. The price hikes decrease utility compared to the price before the hike, and the hike is imposed on drivers who may well not make hikes of their own volition.
They don't just increase prices whenever they feel like it. They increase prices in times of high demand. When there's higher demand, it's harder to get a ride (it takes longer, if you can even get one). Your point only makes sense if you consider the utility only of the people who actually get the rides, which is an incomplete perspective. You need to consider everyone in the market. By increasing the price, the rides go to the people who are willing to pay more for the rides, and therefore presumably need them more. So the market is actually using the price to direct an efficient allocation of goods -- as it should. Therefore the price hikes actually increase total utility.
To go back to my illegal cab example, the only time drivers start price gouging in Beijing is in the early hours of the morning near bars and clubs. And in those instances, you can just try a few different people and will eventually get one who will accept a reasonable price. By enforcing a price floor, Uber is preventing its drivers from doing that.
All this says is that Beijing drivers are not making as much money as they could be making. That's not an argument against Uber.
owen wrote:sooooo, cab companies carry insurance why?
Evidently because of people like you, who think that you deserve everyone else's money when something bad happens to you.
you could probably help the airline industry too, because people seem to sue them when they are assaulted on planes
More whiny crybabies. If you get assaulted by someone on an airplane, sue the person who assaulted you. Don't get mad at the whole world because you couldn't peacefully settle a dispute with someone.