Tag Archives: uber

consumer surplus

1 Oct

london 6.39pm 12.2C

this concept seems to be the thing occupying some brainy minds.

all because levitt, has been playing with the statistics that uber has been generating with its pricing according to demand. so it can find out how much users want to pay for the service and even how much they dont. like an auction really. that is what i would call it. u can argue that each time a user opens the app, they are participating in an auction, not in goods, but in service. he calls it showing a demand curve. haha.

 i wonder if he were to use the data from an auction house, the bidding data … whether that might not illustrate a demand curve. though in an auction there is a subtle influence, competition between bidders. whilst in uber there is no perceived competition, it is just each person’s wants at that moment in time… so maybe auction is not quite the right term for the uber pricing. or call it an auction without the egos coming in to play. haha. 

Okay, let’s. Let’s say you go to the grocery store or the farmer’s market to buy some apples. You happen to want four apples, and you’d be willing to pay $1 each. Four dollars total. But the apples only cost 50 cents each. So the four apples cost you $2 instead of $4. The $2 that you saved from what you would have been willing to pay? That is consumer surplus.

Why Uber Is an Economist’s Dream

it kind of remind me of the pricing the supermarkets use with end of date goods that they sell off at the end of the day. in the bargain shelves. they gradually reduce their prices, but not in regular decrease… they make small reductions early in the day and then near the end of the day they make a sudden drop… i wonder if they are using some kind of research data to determine what makes people buy. it does remind me of the eg they gave about pricing during a time of an impeding storm. sale of flashlights and batteries… the law prevents shopowners from raising the price, but if it did, it might follow the pattern of the reduced price bargain bins, but in the opposite direction. price rising higher and higher at first then falling…. prevents hoarders.

similar to the bargain prices, prices start high, wiht little reductions; prevent a guy coming along and just sweep all the goods off the shelves if u drop the price to so low at the beginning of the day, so that there is none left to sell by the days end. 

business competition

9 Aug


london 8.35am 14.3C sunny tuesday 2016

happened to come across this post about the impact on ola, the biggest ride sharing company in india in its fight for supremacy with uber , in the light of didi china buying uber china. it has been a big change in taxi services… i think allready in uk mini cabs firms will be vanishing. so that business i think will be gone , another victim of technology. maybe even courier services firms too will go. uber can do it all.

and it is also an opportunity for people to build their businesses on it. for eg, a takeaway offering to deliver using uber drivers, rather than maintain their own fleet of riders. though i would imagine what might drive these takeaways to use uber will be  that they might find no one wanting to work exclusively  for them when they can do so with uber and get access to a wider range of clients. 

added. 9.01am saw this post by a user of both ola and uber in chennai and bangalore. seems that uber is providing incentives to ola drivers to change to them. reading the comments, what one person there said is true, each company is trying to drive the other out of business, and so giving huge incentives to drivers and riders. it will all go when they merge… as they did in china. that merger in china means the drivers and customers will not get such a good deal and prices may rise now that there is no competition.

motorbike sharing in ubergurgaon

30 Mar

london 8.18am 6.5C clear wednesday 2016

i find this one interesting, uber providing this service free for the test period.

i am thinking it is great because when i was visitng my parents, in petaling jaya, malaysia, (long ago when they were alive) i had to drive the car down to the nearest metro station, and leave it parked there all day whilst i travel down by metro to kuala lumpur. it would be useful then to have this service, get a lift by motorbike to the station, and then get a lift when i come back. it would hit the taxi drivers livelihood though. and the local authorities’ income from their license.  is it a good thing? sometimes i wonder , if u allow unlicensed operators on the road, you could get trouble. 

uber stealing same day delivery from carriers

17 Feb

london 7.15am 5.7c cloudy wednesday 2016 ,yesterday’s low 0C.

looks like uber is going into the same day delivery business too. not yet in uk, but in other countries. we think of parcels, but how about takeaways? that is something uber might try to do too. or would it cost too much? at the moment pizza places have a fleet of motorbikes , all of them with learner plates haha, that carry the pizza to you. 

the courier business is big, that is why amazon is doing its own delivery now. it tried to bring in drones, but i think they might be rethinking that one.

the problem must be how to ensure the end person gets that parcel. only a human can cope with all the uncertainties there. even myself who stays in a lot , can have couriers come and find me not at  home. usually  they ask my neighbour to hold the parcel for me. it works both ways, sometimes i get to hold his parcel. our letterboxes are too small to let through anything bigger. 

i think the huge rise of internet ordering and online businesses means that lots of things need to be delivered. companies like uber, bnb, (and a new one i just learnt , norway’s nimber) etc can allow ordinary folks to make some money whilst going about their lives. 

added. oh look i just got notification by wordpress that this is my 1000th post. i started this on 26oct 2012. 

A hostage crisis is unfolding in Sydney, with a possible Islamist militant connection – Quartz

15 Dec

A hostage crisis is unfolding in Sydney, with a possible Islamist militant connection – Quartz.


i saw this , this morning, first thing when i opened my wordpress reader. it came up because of uber’s response to the spike in the cost due to the algorithm of their price structure. the higher the demand the higher the fare goes up. but it seems uber made a bad call when it said it was so concerned and said that the price hike will encourage more of the uber drivers  to go into the area to pick up people.

on the face of it, it seems logical, after all, who in their right mind will want to go into that area , esp when the police are telling everyone to get out of it. so the incentives must be there. but people are illogical… and so the tweeters rounded on uber and poured scorn on them.

but if u think about it, if the price is not raised, to $100 it seems, there will be no uber taxi to bring them out. on the other hand, you could take the metro, or whatever it is called now. the hostages are allready taken , in the cafe, so really there is no urgency to get out of the area. it seems to me people have lost a sense of perspective.

our market economy racks up the cost of doing the simplest thing. but people can chose to take it or leave it. there are cheap alternatives. people complain about how the poor are disadvantaged because of the cost of these services. but if u look at it another way, u can say the rich are being conned to spend their money by the enticement of the market…. let the rich be suckers for the hard sell, the soft sell, the sell that panders to their egos.

so u can chose to pay AUS$100 to take a uber taxi, or u can just get onto the metro at a fraction of the cost. if u chose the uber taxi dont complain about the cost. and the poor who dont want to pay, dont complain that it is not available for you and feel left out. just no need to envy them, but be smug that there are fools who will be separated from their money.

so my advise to the poor is dont be consumed with envy for the rich, and take the attitude that their so called extravagant lifestyle is simply they are just victims of the high mark up that the market puts on luxury goods that take them for suckers.

it been years since i was in sydney but they have a great and lovely double deck carriage on their train service with seat backs that can flip over to face the other way, which i thought was  a great idea , but have never seen it anywhere else in the world. perhaps they have replaced those trains now. who knows.