In part I of this morality tale I looked at some of the effects of Uber’s surge pricing. Uber raises prices when demand is high — Friday and Saturday nights, say, when a lot of people want to drink without worrying about driving or in the particular case I looked at, after the explosion in the Chelsea neighborhood of New York City (which did turn out to be a bomb, evidently) when a bunch of people in that neighborhood suddenly decided they very much wanted to be somewhere else.
When the price of a ride increases during a time of unusually high demand, there are two effects. Some drivers who might otherwise not drive will find it worthwhile to drive. And some riders who might otherwise have requested an Uber will choose not to. They will either postpone their trips or skip them altogether.
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