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Surge Pricing in Uber Company - Essay Example

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Summary
The essay "Surge Pricing in Uber Company" focuses on the critical analysis of the major issues concerning surge pricing in Uber company. Lisa chow and Zoe are discussing surge pricing. The business of Uber Company is to charge people more than normal costs for a cab ride…
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Surge Pricing in Uber Company
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There are many examples given here about people that were found in such situations and then forced to pay more than the regular charge. Jacob tells his story about what happened when his wife was about to deliver their second daughter, Baby Olivia. It occurred in summer on a Friday evening when his wife called him. His wife was working until she went to labor pains. She worked next to his office, and she was coming to meet him so they could go to the hospital. They went to the road to flag down a vehicle. It was hot, and the cabs were moving fast without stopping but, fortunately, one stopped, and they were heading to the hospital. Jacob was surprised when the driver told him that he was to pay four times the normal charge. He was very furious, but the condition of the wife left him no other option but to pay what the driver wanted (Planet Money, 2014).

Another example is where a young couple was forced to pay seven times the normal charge. It was December in the New York City. It was raining, snowing, and sleeting, cold weather and cabs were sliding on the road. The young couple aged around 25 years had waited for one and a half hours without finding a car. They even tried to call service vehicles in vain. The lady was wearing a short skirt in the chilly weather. Then came a driver from Uber Company and they ended up paying seven times the usual charge. Liza Chow was also caught in the snow and paid $192 instead of $65 for a 5-mile car ride by Uber Company.

Lisa chow and Zoe make an argument that surge pricing may benefit everyone. They define the argument by saying if Uber Company does not charge more than the standard cost drivers will not be motivated. They will not go out struggling in the snow. Surge pricing will help the people out in the snow or when it is sleeting as the drivers will be available knowing the pay is more. Hence surge price will benefit the drivers and the people caught in the snow and the rain and some difficult situations like rush hours.

However, other companies like home depot do not take advantage of their customers when they are in desperate need. For instance, they don’t surge the salt price when they realize their salt is in high demand during the winter. The salt is used in melting the snow, and even though it is in high demand the prices are constant. Though surging is good as it may appear to business people, it may have a long-term adverse effect on potential customers.

Home depot values its clients and, therefore develops a long-term and good relationship. Businesses aim to create profits. Companies should assess their customers as they are the ones making the profits possible. All corporations should put their customers ahead before anything else. Uber Company as much as it aims at making profits should value its customers by making them aware of its operations.

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