I Like Variable Pricing—But Uber’s Opaque Pricing Feels Like a Slot Machine
Upfront Tip E-mail Signup: https://www.levispires.com/More Perfect Union Video: https://youtu.be/tLIgmEibBL0?si=WTkGhspbEY40kJpn
In this episode, I explain what I meant when I said I like variable pricing in a More Perfect Union interview, and why that doesn’t mean I approve of how Uber prices rides today. I break down different pricing models—fixed rate cards, variable and dynamic pricing, surge, cost- and value-based pricing, algorithmic pricing, and the darker “gray area” concepts like personalized pricing and potential algorithmic wage discrimination. Using examples like beer prices, a music video for Britney Spears vs. my granddaughter, and a subway incident that triggered surges, I argue that variable pricing can be efficient when it’s tied to clear market conditions. The real problem I see as a driver is unexplained price swings and the loss of driver agency—without transparent signals like surge amounts, earnings feel arbitrary, like gambling.