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home about the blog about me contact subscribe -- is this the last new year’s eve of uber surge pricing posted by tom lindmark on december 31st, 2014 timothy b. lee offers several defenses of surge pricing by uber and lyft, including this. it might seem like an obvious point, but it’s often overlooked by people who complain about surge pricing. surge pricing gives drivers an incentive to spend more time on the road than they otherwise would. it encourages them to re-arrange their schedules to make sure they’re available on nights of peak demand. and it entices drivers who might otherwise like to go out partying themselves on new year’s eve to hit the road instead. i haven’t been able to find any hard data on how much higher prices increase the number of drivers on the road — a measure economists call the elasticity of supply. but there’s reason to believe that big price increases will be more powerful during nights of predictably high demand — like halloween or new year’s eve — than at other times. if demand spikes unexpectedly, there might be a limit to the number of people who can immediately jump in their cars and help out. but everyone knows new year’s eve is the biggest night of the year for taxi service. lyft has been sending me emails all week reminding me that i could make a lot of extra money if i drive tonight. so people who need some extra money have plenty of time to make the necessary arrangements. so, to his credit, he admits that there is no data supporting surge pricing as a means of enticing ride share drivers onto the road but suggests that surge pricing incentivizes drivers to come out. the point he elides is that it is just as likely that drivers will come out on nights like new year’s eve whether there is surge pricing or not. the sheer volume of ride requests guarantees more business than they can adequately serve, and consequently a profitable evening. it is not surge pricing which allows just about every taxi company in major metropolitan areas to lease all of their cabs with ease on nights such as these. to an extent the success of uber has been driven by pricing its service substantially below the local taxi market prices. its ability to do so derive from a substantial venture capital funded war chest as well as evasion of costly local regulations (the appropriateness of that evasion is a subject for another post). uber’s price competition does saddle its drivers with a structure which compensates them at a level which allows for simply minimal profitability. surge pricing is the variable which boosts drivers’ take to acceptable levels. without it uber might find it difficult to continue to attract and retain drivers. to put it another way, surge pricing has nothing to do with enticing drivers to offer their services during busy periods. it is an excuse which uber uses to overcharge for rides in order to bring the total compensation of drivers to a level whichwillensuretheir continued participation with the company. it’s not necessary on new year’s eve but it can be spun as such in order to achieve a different objective. the problem uber faces is consumer resistance to surge pricing. not that riders will refuse to use their service; rather they are becoming educated and will simply arbitrageamong transportation providers for the lowest cost rather than simply punching up a ride on uber. as taxi companies respond to uber’s challenges and offer their own apps the ability to choose between price and convenience becomes much easier and uber’s ability to offer its drivers the extra compensation from surge pricing is diminished. among other challenges facing uber will be its ability to replace the lost surge pricing income with higher fares and the concomitant effectthatwill have on their attractiveness to taxi service. uber isn’t going away but surge pricing is, and that represents a significant challenge to the company’s business model. posted in uncategorized no comments » a different view on oil prices posted by tom lindmark on november 30th, 2014 sober look presents a different take on the effect of lower oil prices on us oil production than i did in my post yesterday . they quote scotiabank suggesting that the bakken and permian basin fields are producing below break even based on current prices, while eagle ford is still in the black. they posit slowing drilling activity and tighter credit for independents if these prices hold. i don’t think it’s unreasonable to expect a bit of the froth to go out of the us e&p market, but i doubt that at current levels any effect is going to be other than on the margins. interestingly, sober look postulated that oil prices might get a temporary boost at least domestically if the government should choose to add to the strategic petroleum reserve. such a move would present a difficult choice for an administration committed to renewables and clearly hostile to fossil fuel production. on the one hand, lower oil prices and the consequent depressing effect on production would be welcome by its enviornmental base, while lower oil prices strain the economic arguments in favor of wind and solar. oh, and lower oil prices certainly don’t do much to dampen the american love affair with suvs and pickups. overall, i doubt that any attempt to boost prices will be viewed as a viable political alternative. posted in uncategorized 2 comments » us oil production will be fine with lower prices posted by tom lindmark on november 29th, 2014 before monday rolls around and the analysts start talking their book at cnbc and elsewhere, take a look at this short article on oil prices from market watch. moreover, this supposed floor reflects the “full cycle costs” of production, they said, arguing that this overlooks the fact that many producers in north dakota, texas and elsewhere have already acquired acreage, contracted rigs and even hedged crude prices. “we think what counts at this stage is half-cycle costs,which are in the significantly lower band of $37 to $45 a barrel. this means that the floor is falling and may not be nearly as firm as the saudi view assumes,” there is probably no commodity or industry of of which the death of all or parts of it have been so routinely predicted and so consistently wrong. most of the time the so-called experts overlook or don’t understand the technology of the industry, particularly the advancements in exploration and production. someday, no doubt, someone is going to be right and the industry willfade away. you and i will be long forgotten when that happens. posted in business tags: oil , opec 3 comments » chasing our tails posted by tom lindmark on november 29th, 2014 though it’s not of great import, this story about the aca conflicting with americans with disabilities act is too good to pass up. the cliff notes version is that the aca allows companies to offer financial incentives to employees who participate inworkplace wellness programs. you know, obesity, smoking cessation programs, etc. the quid pro quo to the financial incentives, which can amount to thousands of dollars, is that participants are monitored and tested to make sure their claims to abstinence are true. well, that runs headlonginto the american with disabilities actwhich says you can’t make medical inquiries of employees unless its job related or part of a voluntary wellness program. your reaction is probably the same as mine. what’s the big deal sinceno one is forced to enter the wellness programs, no harm, no foul. the equal employment opportunity commission, however, takes a different and decidedly dimmer view. intheir universe the fact that participation involves significant financial awards obviates the voluntary nature of participation and hence violates the law. ergo, they’re suing honeywell and a couple of smaller companies for essentially complying with the aca. we probably need a new cabinet level department to adjudicate diametrically opposed elements of legislation and regulation designe

URL analysis for butthenwhat.com

http://butthenwhat.com/2009/12/
http://butthenwhat.com/2011/01/
http://butthenwhat.com/2011/09/
http://butthenwhat.com/2014/11/30/a-different-view-on-oil-prices/#comments
http://butthenwhat.com/2009/04/
http://butthenwhat.com/tag/government-employment/
http://butthenwhat.com/tag/eeoc/
http://butthenwhat.com/2014/10/
http://butthenwhat.com/2013/04/
http://butthenwhat.com/2012/02/
http://butthenwhat.com/2014/11/29/chasing-our-tails/
http://butthenwhat.com/2013/12/
http://butthenwhat.com/2010/07/
http://butthenwhat.com/2010/09/
http://butthenwhat.com/2012/04/

Whois Information

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Domain Name: BUTTHENWHAT.COM
Registry Domain ID: 1528318563_DOMAIN_COM-VRSN
Registrar WHOIS Server: whois.tucows.com
Registrar URL: http://www.tucowsdomains.com
Updated Date: 2017-11-10T23:04:20Z
Creation Date: 2008-11-13T05:03:12Z
Registry Expiry Date: 2018-11-13T05:03:12Z
Registrar: Tucows Domains Inc.
Registrar IANA ID: 69
Registrar Abuse Contact Email:
Registrar Abuse Contact Phone:
Domain Status: ok https://icann.org/epp#ok
Name Server: NS1.WEBSITETOUCHUP.COM
Name Server: NS2.WEBSITETOUCHUP.COM
DNSSEC: unsigned
URL of the ICANN Whois Inaccuracy Complaint Form: https://www.icann.org/wicf/
>>> Last update of whois database: 2018-09-16T08:10:18Z <<<

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Registrars.

  REGISTRAR Tucows Domains Inc.

SERVERS

  SERVER com.whois-servers.net

  ARGS domain =butthenwhat.com

  PORT 43

  TYPE domain

DOMAIN

  NAME butthenwhat.com

  CHANGED 2017-11-10

  CREATED 2008-11-13

STATUS
ok https://icann.org/epp#ok

NSERVER

  NS1.WEBSITETOUCHUP.COM 192.185.189.110

  NS2.WEBSITETOUCHUP.COM 192.185.189.110

  REGISTERED yes

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