This nit complains that Uber charged him a 3.6X multiple of the ordinary taxi fare during a period of high demand – namely Melbourne Cup day. The alternative was for the usual flat fare to be charged and therefore for the excess demand to remain unmet on this day with some punters in urgent need of a taxi consequently being left stranded at Flemington.
Charging a high fare means that only those with the most crucial need for a taxi ride will use the service – others may take public transport perhaps with a walk. It also means there are maximum incentives for taxi drivers to be out on the road driving on this day when most of us are taking the day off.
The fare wasn’t sprung on the nit. He agreed to pay the large fare without checking what it was. After getting the bill he has launched into an attack on Uber.
OK it isn’t perhaps an issue of nation-shattering significance but the lousy journalism at The Age is an issue of consequence. The journalists here have no knowledge of the most basic economics and push an anti-markets viewpoint that makes us all worse off.
The same stupidity ranges into a whole range of other fields – popular community opposition to “scarcity pricing” of water is an example. How outrageous to price water that is in short supply more highly! How outrageous to encourage care in use and in creating new sources of supply!