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Uber Accused of Cashing In On Bomb Explosion By Jacking Rates (thesun.co.uk) 428

After a bomb exploded in Manhattan, leaving 29 injured, people leaving the scene discovered Uber had doubled their fares. An anonymous Slashdot reader quotes The Sun: Traumatized families caught up in the New York bomb blast have accused Uber of cashing in on the tragedy by charging almost double to take them home. Furious passengers have taken to social media to slam the taxi firm in the wake of the blast... Uber reportedly charged between 1.4 and 3 times the standard fare with one city worker saying he had to pay twice as much as usual. Mortgage broker Nick Lalli said: "Just trying to get home from the city and Uber f****** doubled the surge price."
"Demand is off the charts!" the app informed its users, adding "Fares have increased to get more Ubers on the road." Uber soon tweeted that they'd deactivated their surge pricing algorithm for the affected area in Chelsea, "but passengers in other areas of Manhattan said they were still being charged higher than normal fares." One of the affected passengers was Michael Cohen, who is Donald Trump's lawyer, who tweeted that Uber was "taking total advantage of chaos and surcharging passengers 1.4 to 1.8 times." And another Uber user tweeted "I'm disgusted. People are trying to get home safe. Shame on you #DeleteApp."
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Uber Accused of Cashing In On Bomb Explosion By Jacking Rates

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  • yawn (Score:3, Insightful)

    by Anonymous Coward on Sunday September 18, 2016 @02:36PM (#52913007)

    how many times will the press run this identical story after an incident?

    • Re: (Score:3, Insightful)

      by friedmud ( 512466 )

      Exactly.

      I don't understand the problem myself. Without Uber you wouldn't have had a ride at all. If you don't like the pricing try waiting for a taxi or use another service.

      Repeat after me: Uber is NOT run by the government... that's both what makes it good... AND what leads to scenarios like this. You can't have the good (low fares, clean cars, drivers that give a shit) without allowing them to work with the free market (supply / demand).

      • Re:yawn (Score:5, Insightful)

        by Lumpy ( 12016 ) on Sunday September 18, 2016 @06:40PM (#52914125) Homepage

        "Without Uber you wouldn't have had a ride at all."

        or worse! you would have to ride on public transportation with actual poor people!

        Yeah I dont feel bad at all for Uber riders.

      • Re:yawn (Score:4, Interesting)

        by Holi ( 250190 ) on Monday September 19, 2016 @06:50AM (#52915967)
        It's New York City. You don't think their may have been a few yellow cabs around? You know the taxi's that are prohibited by law from raising their prices like this.
    • Medallion cabs respond to disasters by disappearing. It's New York - you can take the subway or the bus if you really need to get home right now in the middle of a disaster.

      I have never lived in NYC, but I have lived in a city of even greater population and density (31 million at the time) and the great advantage to living in such a place is the diversity of transportation options. And on the two occasions when there was a general transportation strike, I joined the crowd and walked across the city.

      • But you have to do more than press a button to take the subway. So we can't have that. No method of transportation should be more complicated than an Apple device.
      • by AK Marc ( 707885 )

        Medallion cabs respond to disasters by disappearing.

        That's what the market demands. The medallion cabs are paid for the trip. In a "disaster" (this wasn't one, it was just a scare), people want to move. If you are a Taxi and in the disaster area, and you have a fare to go from the disaster area to NJ, you would. Then you are in NJ. Do you dead-head back to the disaster scene, or take another fare to somewhere else? Whatever keeps the back of your cab full of paying customers is best for you, and since nobody wants to go to the center of a disaster, the

  • by Fragnet ( 4224287 ) on Sunday September 18, 2016 @02:41PM (#52913025)
    It's an algorithm. The more in demand the product is, the higher the price.
    • by Anonymous Coward on Sunday September 18, 2016 @03:03PM (#52913119)
      Headline should read "Uber Increases Driver Pay to Help Meet Emergency Demand."
    • by Thyamine ( 531612 ) <thyamine@NOsPAm.ofdragons.com> on Sunday September 18, 2016 @03:34PM (#52913279) Homepage Journal
      Exactly. A person was not sitting there watching the news thinking 'Excellent, we can get some extra dollars from this.' The algorithm saw more people than normal were suddenly looking for a ride, and the prices went up. From what I see, when Uber realized _why_ they tried to make adjustments, but people still complained they weren't adjusting it enough or in all areas or such.

      This isn't a company trying to profit from terrorism; this is a company who has a product that is not being accused because they probably haven't had to deal with this before. And accurate news coverage during these times isn't exactly spot on; I doubt it was clear who/what/where was going on so they could accurately make all changes that in hindsight would have made sense.
  • by __aaclcg7560 ( 824291 ) on Sunday September 18, 2016 @02:41PM (#52913027)

    One of the affected passengers was Michael Cohen, who is Donald Trump's lawyer, who tweeted that Uber was "taking total advantage of chaos and surcharging passengers 1.4 to 1.8 times."

    A lawyer complaining about being shafted? How ironic...

    • Not just a lawyer. A lawyer who works for Trump.

  • So..... (Score:5, Insightful)

    by JBMcB ( 73720 ) on Sunday September 18, 2016 @02:42PM (#52913033)

    Take a taxi?

  • by srwood ( 99488 ) on Sunday September 18, 2016 @02:44PM (#52913041)

    Supply and demand. Market is efficiently allocating scarce resources. Price increase will increase supply providing consumers with more of the scarce resource. It's a thing of beauty really.

    • Supply and demand. Market is efficiently allocating scarce resources. Price increase will increase supply providing consumers with more of the scarce resource. It's a thing of beauty really.

      I think this kind of thinking makes the same fundamental mistake as communism.

      Your theory works great, it makes for a very efficient, productive, and fair system. The only problem is that people don't work the way you need them to work for your theory to succeed.

      Price increases in an emergency will typically be perceived as companies taking advantage of a desperate customer, and customers will react with outrage.

      There are really only two ways to deal with this.

      First, try to convince the users that the price

  • Um... (Score:5, Insightful)

    by fahrbot-bot ( 874524 ) on Sunday September 18, 2016 @02:45PM (#52913043)

    After a bomb exploded in Manhattan, leaving 29 injured, people leaving the scene discovered Uber had doubled their fares.

    People called an Uber driver *into* a disaster area and/or potential terror/war zone for a ride home and are pissed that the rates went up? Hazard pay people. And private companies w/o public supervision can do whatever they want. If you don't like it, take a taxi or the subway, or fucking walk. First-world problems for sure.

    • Re: (Score:3, Insightful)

      by war4peace ( 1628283 )

      That attitude is a result of media infecting people every time there's a tragedy. They fill your (as in collective "you") head with stories of self-sacrifice and "everybody helps everybody else" so much that people become entitled and start demanding this all the time.
      "UBER Y U NO FREE RIDES"
      "GSM Y U NO FREE CALLS"
      "HOOKERS Y U NO FREE BJs"

      While companies volunteering to help and accepting temporary reduction or removal of profit in these cases is nice, it's not mandated or compulsory and shouldn't be treate

    • Re: (Score:2, Insightful)

      by Tailhook ( 98486 )

      First-world problems for sure.

      Indeed. People poke at an app on thier Star Trek Communicators to summon transportation they expect to ferry them away from a scene of terrorism and they're pissed that this service comes at a premium. The only injustice here is Uber selling their drivers up the river by suppressing the surge price. The people complaining are entitled shitheels that deserve to be ridiculed.

  • ... the actual value of a cab ride increases considerably. That's not manipulation, it's actually more valuable to have a car take you the same distance when you don't have the alternate choice.

    Meanwhile, any Uber driver that had a bit of flexibility and could jump and make a bit of cash. And in the process, help relieve the crush of people that are stranded by shutting down a system used by more than 50% of commuters [nycedc.com].

    The wisdom of shutting down our world for each boo-boo remains undecided ...

    • Except they didn't shut down the subway, so these nits still had that option rather than whine about Uber. They rerouted the two lines that were running on 6th Av (obviously they want to check the tunnels for damage, and the station for bombs). The PATH and D were already not running on 6th av due to weekend maintenance work. The 23st and 7th Av station was closed (I do not see the wisdom in that), but that was the *only* closure. People could walk two blocks west to 8th Ave or one block east to Broadwa

  • Demand = Supply.

    It's magic, as long as you have some way to keep it balanced.

    Stupid headline driven sensationalist journalism.

    --Q

    • Not to mention Uber artificially lowers the price increases during high demand, so if the algorithm was allowed to work properly match the demand and supply curves those people would be looking at 20-30x increases... minimum... not 1.4-1.8x.

  • by Anonymous Coward on Sunday September 18, 2016 @02:56PM (#52913081)

    Uber is exploiting people by using them as cheap labor. They need to be forced to pay them a living wage......... except when I need a cheap ride.

  • There were multiple bombs. If there were multiple bombs in MY city, I wouldn't be driving downtown back and forth in it, one or more of the other bombs might blow up. Even if there had just been ONE bomb, it isn't like you know that.

    It seems reasonable that the contractors would want extra compensation for the risks they were taking to their life and property. Even soldiers get combat pay, and they have a full time job, not a series of gigs.

  • by haruchai ( 17472 ) on Sunday September 18, 2016 @03:00PM (#52913113)

    so what's the problem?
    Hey Cohen, tell that cheap bastard Trump you want fantastic, amazing limousine service

  • Apparently, people would rather wait a long time for a ride home from some horrific event, than let market forces solve the problem of the sudden surge in demand. The problem is people viewing their needs in isolation, instead of in the greater context. If someone didn't like the price, they should forego the ride and let someone who wants it more than them to have it.
    • by vux984 ( 928602 )

      So you feel there is only:

      Option 1 - do nothing. keep rates the same. people wait a long time.

      and Option 2 - jack up rates, more drivers on raods, people wait less.

      And yet, I see other options:

      Option 3 - jack up driver compensation, keep rates the same. more drivers on roads, people wait less, uber doesn't profit as much for a few hours. Call it a PR move; write it off as a charitible donation.

      Option 4 - raise overall prices a fraction of a nickle to build up a contingency reserve fund for events like this

  • by ilsaloving ( 1534307 ) on Sunday September 18, 2016 @03:17PM (#52913169)

    Aww poor little Mikey... Unbridaled capitalism isn't quite as nice when you're the one negatively affected, is it?

  • by superwiz ( 655733 ) on Sunday September 18, 2016 @03:19PM (#52913185) Journal
    Why are they "accused" of jacking the price? "Described as" jacking the price would be a statement made in a moral society. In case any one forgot, Communism is the immoral social order. It's based on a lie that those who don't contribute, but "organize", are more competent at figuring out what is the appropriate cost of things. So when they don't understand why demand is surging (as it is in crisis), shortages are universal because those who can contribute cannot recoup their costs by increasing the prices. In Capitalism, a surge in demand creates a bubble of supply by willing contributors and the price quickly collapses when the demand is met. And the reason this happens is because prices increase. If there were more people in need of rides than willing drivers, a price could be increased until everyone able to give a ride would be willing to give rides (even those who would never consider doing so otherwise).
    • The moralizing aside, the people are pissed because the free market made them pay more than they wanted. The free market is great when it makes folks winners, but when it makes them a loser, they start talking about how unfair it is.

      Either capitalism is fair or it isn't. You don't get to pick and choose when it is based on if it helps or hinders you.

  • As far as I understood things, Uber's system automatically raises prices based on surges in demand. There's no human intervention involved.
    So getting all upset at Uber for this is pointless. Yes, most companies like to give people some financial breaks in times of disaster, like cellphone companies waiving fees for residents in flooded area or areas hit by tornadoes. But Uber can't really do anything about the computerized system working as designed and re-calculating rates based on usage, as soon as an ev

  • ech (Score:3, Insightful)

    by matushorvath ( 972424 ) on Sunday September 18, 2016 @03:50PM (#52913385)

    That's just showing a complete lack of understanding how Uber works. In case of emergency like this one, would you rather pay more for your fare, or wait indefinitely because there are not enough drivers? Those are the only two options. I personally would prefer pay more.

    The way of getting more Uber drivers is to pay them more to incentivize them to come to work. If there is a sudden rise in demand, there will be a sudden increase in price.

    This whole discussion is absurd for someone who has lived in a socialist country. If you keep the prices constant no matter what is the demand, it only results in empty shops. You can't cheat the market forces.

  • by JoshuaZ ( 1134087 ) on Sunday September 18, 2016 @04:04PM (#52913467) Homepage
    Regular taxis do this also but just lie about it and claim that they don't. I was stuck right after the aftermath of the Boston Marathon Bombing and the taxis were charging $100 to $200 for what was normally a $15-$20 ride. The only major difference is that Uber is open that they do this, and the direct impact is clear: more drivers get on the roads as the prices will bear it. Pretending that regular cabs don't do this in emergencies is just silly.
  • Pretty obviously the surge pricing is needed, just as the message says to get more cars to an area - but also in addition as another poster noted, these drivers are driving into a potentially hazardous area...

    Yet people are rightfully irked that in times of crisis the private car they hired is all out of Grey Poupon and a little more expensive than normal.

    So what can Uber do to make everyone happier about this?

    Since these events are hopefully somewhat rare, what Uber could do is to recognize times of crisis

  • There's a lot of hate directed at a company who has yet to actually displace Taxi services in a given area. Maybe next time Uber should take a stand and decide to completely shut down in an affected area out of respect for their drivers who have to drive around in the chaos and as a reminder to the general population that Uber is a choice. Don't like it, don't use it.

    18/September: FUCK UBER. Price gouging bastards. #boycot #deleteapp #neverusingagain.
    19/September: Wow taxis are really expensive! I wish ther

  • "Mortgage broker Nick Lalli"

    was unharmed.
  • Year in, year out you tell me how much taxis are overpriced (which they need to be for overcommiting and having a fixed price), and after ruining Taxi companies while singing hymns to the free market about demand and supply, you complain that rates go up when the demand peaks?

    It's not like Uber said "we will make money from these bombs" it's more like "demand goes up, since people like to get away from bombs and price goes up".

  • In times of serious emergency, Uber could gain considerable goodwill if they'd offer rides for no/heavily reduced fares. The driver would receive bonus pay and the passenger would get a reduced-fare lift. I mean, these events are rare, it's an opportunity to not fuck people over. They'd gain customers and make the drivers proud.

    Act like the US healthcare system, but in reverse.
  • I think that Uber is making the wrong decisions in these disaster scenarios. At least if you have an algorithm that responds to demand, you can stand behind it and say "this works as it is supposed to, and is designed to get the most number of people rides as quickly as possible". Once they start turning it on and off (when people complain), it starts to feel a lot more arbitrary and less fair.

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