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I’m not a huge fan of Uber’s corporate policies in general, but help me understand what’s wrong with this. Isn’t this what any company would do: maximize revenu

by i_k_k 1y ago

I’m not a huge fan of Uber’s corporate policies in general, but help me understand what’s wrong with this. Isn’t this what any company would do: maximize revenue from customers while minimizing expenses to their suppliers? Most businesses don’t tells us how they do this. My grocer sells me a can of beans at some price. I have no idea how they arrived at that price, how much they paid their wholesaler, or that they may have a sale on beans next week. I buy or don’t buy beans based on whether I feel they’re worth the cost. And whether I feel like beans.

kirykl 1y ago
If the retailer is in a monopoly position and the prices are not public it may be exploitative
- i_k_k 1y ago
  I’d agree - but is it? Where I live (not a top-ten US metro area) we also have Lyft and a number of traditional cab companies. Uber is big, but by no means a monopoly.
  - kirykl 1y ago
    Yea I agree Ubers not a monopoly in many markets. Fixed taxi pricing would be the baseline alternative
aunty_helen 1y ago
Your grocer doesn’t sell the next person a can of beans at a different price though. Hey nice watch, we have a 50% on discount for you. I use uber a lot, I’m in one right now. My partners phone consistently gets cheaper estimates.
- HDThoreaun 1y ago
  > Your grocer doesn’t sell the next person a can of beans at a different price though. Yes they do. They even do everything they can to track me so they can optimize the coupons based on the watch I wear.
- abtinf 1y ago
  Grocers run coupons and promos to help achieve price discrimination based on purchase timing preferences.
  - cameldrv 1y ago
    Some even have a coupon app and offer different deals to different people.
    - freeopinion 1y ago
      Challenge: Implement price discrimination in a setting where all prices are published on the shelf under the product without knowledge of who is viewing the price. Possibility: Develop a "loyalty" program where customers provide a member id like a phone number at checkout. Anonymous shoppers get the worst pricing. Everybody else voluntarily signs up for price discrimination disguised as rewards.
      - BobaFloutist 1y ago
        Also the low-tech version: farmer's markets, bakeries, anything with perishables they sell daily will often give steep discounts or freebies if you show up close to closing, rewarding those that are in-the-know or are willing to modify their schedule to save some cash.
jowea 1y ago
If I understand TFA correctly, what is going on, is that the grocer is going * This person is wearing a suit, I'm going to charge double * This is a regular that always buys the same thing every week, I can charge 30% more without breaking his routine * This one is buying the ingredients for a recipe to do tonight, I can charge double more on one product because she won't want to go to another grocer just for one missing item. Or in economic terms it is doing price discrimination to turn the consumer surplus into profit for itself. I think it's obvious why consumers wouldn't like that. Although they can also do "this one is a cheapstake with lots of free time, I have to offer a 20% discount to keep him coming"
- netsharc 1y ago
  Next: Cheapskate as a Service. Are you a cheapskate that can get discounts? Sign up on our app and use your "he gets great discounts" status to buy things for others, and earn a percentage of the savings!
  - tcoff91 1y ago
    With the way things are going, this isn’t even far fetched.
    - garciasn 1y ago
      We literally target advertisements in lookalike audiences based on behavioral profiling from on-site and in-store actions. It's been like this for more than a decade in my job; it's literally what I do for a living. But this has been happening with RFM direct mail for DECADES. One major clothing retailer I worked with for 4+ years was big on promotions, particularly via direct mail. Those scratch-off coupons were not random; they were specifically targeted to individual customers based on their prior behavior. For example: - Customer A historically buys when they get a 30% coupon; test them with a 20% and see if they bite, but if not, give them the 30% and get some money. - Customer B will always buy with almost ANY discount but never without one; give them the lowest one most of the time, but occasionally give them a higher one because it keeps them interested. - Customer C will buy any time, but we need to keep them hooked so we send them the lowest one all the time. --- I just don't know why people are surprised that this is happening at a bigger scale in app; it's baffling to me.
georgeecollins 1y ago
I was thinking the same thing! Also, I have a Lyft app on my phone right next to Uber. Most places I go are served by both customers. It's easier to switch than groceries.

by i_k_k 1y ago

kirykl 1y ago

If the retailer is in a monopoly position and the prices are not public it may be exploitative

i_k_k 1y ago
I’d agree - but is it? Where I live (not a top-ten US metro area) we also have Lyft and a number of traditional cab companies. Uber is big, but by no means a monopoly.
- kirykl 1y ago
  Yea I agree Ubers not a monopoly in many markets. Fixed taxi pricing would be the baseline alternative

aunty_helen 1y ago

Your grocer doesn’t sell the next person a can of beans at a different price though. Hey nice watch, we have a 50% on discount for you. I use uber a lot, I’m in one right now. My partners phone consistently gets cheaper estimates.

HDThoreaun 1y ago
> Your grocer doesn’t sell the next person a can of beans at a different price though. Yes they do. They even do everything they can to track me so they can optimize the coupons based on the watch I wear.
abtinf 1y ago
Grocers run coupons and promos to help achieve price discrimination based on purchase timing preferences.
- cameldrv 1y ago
  Some even have a coupon app and offer different deals to different people.
  - freeopinion 1y ago
    Challenge: Implement price discrimination in a setting where all prices are published on the shelf under the product without knowledge of who is viewing the price. Possibility: Develop a "loyalty" program where customers provide a member id like a phone number at checkout. Anonymous shoppers get the worst pricing. Everybody else voluntarily signs up for price discrimination disguised as rewards.
    - BobaFloutist 1y ago
      Also the low-tech version: farmer's markets, bakeries, anything with perishables they sell daily will often give steep discounts or freebies if you show up close to closing, rewarding those that are in-the-know or are willing to modify their schedule to save some cash.

jowea 1y ago

If I understand TFA correctly, what is going on, is that the grocer is going * This person is wearing a suit, I'm going to charge double * This is a regular that always buys the same thing every week, I can charge 30% more without breaking his routine * This one is buying the ingredients for a recipe to do tonight, I can charge double more on one product because she won't want to go to another grocer just for one missing item. Or in economic terms it is doing price discrimination to turn the consumer surplus into profit for itself. I think it's obvious why consumers wouldn't like that. Although they can also do "this one is a cheapstake with lots of free time, I have to offer a 20% discount to keep him coming"

netsharc 1y ago
Next: Cheapskate as a Service. Are you a cheapskate that can get discounts? Sign up on our app and use your "he gets great discounts" status to buy things for others, and earn a percentage of the savings!
- tcoff91 1y ago
  With the way things are going, this isn’t even far fetched.
  - garciasn 1y ago
    We literally target advertisements in lookalike audiences based on behavioral profiling from on-site and in-store actions. It's been like this for more than a decade in my job; it's literally what I do for a living. But this has been happening with RFM direct mail for DECADES. One major clothing retailer I worked with for 4+ years was big on promotions, particularly via direct mail. Those scratch-off coupons were not random; they were specifically targeted to individual customers based on their prior behavior. For example: - Customer A historically buys when they get a 30% coupon; test them with a 20% and see if they bite, but if not, give them the 30% and get some money. - Customer B will always buy with almost ANY discount but never without one; give them the lowest one most of the time, but occasionally give them a higher one because it keeps them interested. - Customer C will buy any time, but we need to keep them hooked so we send them the lowest one all the time. --- I just don't know why people are surprised that this is happening at a bigger scale in app; it's baffling to me.

georgeecollins 1y ago

I was thinking the same thing! Also, I have a Lyft app on my phone right next to Uber. Most places I go are served by both customers. It's easier to switch than groceries.