Comment by cogman10
12 hours ago
> It’s unclear to me why transportation demand pricing is allowed but not delivery.
I don't think it should be allowed. It's predatory. It allows a company like Uber and Lyft to see things like "Oh, you are going to a hospital, then I'm going to apply a 10% surcharge because you are probably desperate".
It also works against the drivers. Uber/Lyft see things like "This person is logged on for 8 hours, they are desperate, so let's give them lower rates and worse routes."
Why shouldn’t a company be allowed to price the product differently? For an airline, booking a flight 6 months out, 6 days out, or 6 hours out are different situations.
For Uber/Lyft, booking a ride into the middle of nowhere carries a cost for the driver that isn’t present when booking a ride to the airport.
A flat fee per mile doesn’t make sense. A flat fee per seat doesn’t make sense. Grocery stores already price segment via coupons, sales, and loyalty programs - this is just an extension of that.
> Why shouldn’t a company be allowed to price the product differently? For an airline, booking a flight 6 months out, 6 days out, or 6 hours out are different situations.
Obviously acceptable. But I'm talking about two people placing an order for the same ticket, same airline, same rewards program and getting different prices because the airline knows something about their private life. For example, maybe the airline has gotten information that one person is going to a funeral and thus are more willing to pay a higher price.
Everything about this encourages corporate espionage on private citizens which I'm opposed to. I'd rather not have google calendar secretly sharing my entries with delta so they can in turn determine what ticket price I might be willing to pay.
There's also not market fundamentals which can correct this situation. Back to the airline example, for any given route you are limited by the number of carriers to that location. Airports are physical things with limited capacity which naturally leads to monopolies and oligopolies. That means you can't just "pay someone that's not doing that" as you only have 2 or 3 options for most locations and they all want to participate in that scheme.
That's one thing, but charging two people for the same route differently is what the parent comment was getting at, and I agree with them.
You're literally saying "an airline, booking a flight 6 months out, 6 days out, or 6 hours out" is not "charging two people for the same route differently", completely missing the point of alex43578's excellent question.
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