Posted by Andrew Nguyen.
Uber is one of the most popular apps that are around today. This application allows users to call upon a driver to take them to a destination of their choice. Uber has become a widely-used application that proves to be beneficial. However, the company is facing a lawsuit regarding their price surges. It was said that CEO Travis Kalanick faces the lawsuit that alleges that he conspired with Uber drivers to increase prices for more profit. The case is Meyer vs Kalanick. Due to the quick growing popularity of the app, the price surged. The suit alleged that the Uber drivers conspired with CEO Travis Kalanick to rig the prices for the rides.
When a user is in a popular area, the price increases due to the amount of users that are around who also want to use the app. This conspiracy was looked on to after New Year’s Eve when the prices went up to $200. The high-price surge had customers outraged by the unrealistic cost for a ride. The company appears to take advantage of how desperate users need to get a driver. By increasing their prices, users have no choice but to either accept it or find an alternative.
In the scheme of things, Uber has done nothing wrong. Sure the prices may be outrageous at times, but that’s how a business is, supply and demand. Uber drivers are independent contractors who make money off of how much they make from driving. Although the prices may be higher than expected sometimes, users are not forced to use the app. The app is available for the convenience of users. No wrong has been done regarding this company. It is tough making a living and Uber is trying to make a statement that their company is an asset to the users.
There are many alternative ways of getting to a destination. However, Uber is probably one of the most convenient ways. What people pay for their Uber ride is not by force. It is a decision that they have to make whether they want to or not. Uber gives an estimated fare price before calling for one, so users typically have an idea on how much they are paying.
Andrew is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2019.