Taxi Driver Online

Uber drivers gang up to cause surge pricing,

Uber drivers team up in gangs to force higher prices before they pick up passengers, research has revealed.

Researchers at the University of Warwick found Uber drivers in London and New York have been tricking the app into thinking there is a shortage of cars in order to raise surge prices.

According to the study. drivers manipulate Uber's algorithm by logging out of the app at the same time, making it think that there is a shortage of cars.

Uber raises its fare prices when there is a high demand for vehicles and a short supply of drivers available. Fares are known to increase during peak times such as rush hour, during public events and late at night. Surge pricing can boost the cost of rides to multiple times the normal rate.

The study said drivers have been coordinating forced surge pricing, after interviews with drivers in London and New York, and research on online forums such as Uberpeople.net. In a post on the website for drivers, seen by the researchers, one person said: "Guys, stay logged off until surge. Less supply high demand = surge."

Responding to fears that Uber might discover that its drivers are manipulating its algorithm, the driver said: "They already know cos it happens every week."

The researchers said the collusion reflects driver dissatisfaction with Uber's policies regarding them, and exposes the "ethically questionable" nature of its algorithm.

"Drivers have developed practices to regain control, even gaming the system," said Dr Mareike Möhlmann, from the University of Warwick Business School. "It shows that the algorithmic management that Uber uses may not only be ethically questionable, but may also hurt the company itself."

It is not clear how much impact the trick has had on prices. Uber denied that the practice is widespread.

Uber said: "This behaviour is neither widespread or permissible on the Uber app, and we have a number of technical safeguards in place to prevent it from happening."

The ride-hailing company has come under fire in the past over its surge pricing, which has rocketed during events including tube strikes, but been suspended during taxi strikes.

Separate research at Northeastern University has previously found passengers can game surge pricing with simple tricks such as waiting five minutes or crossing the road.

http://www.telegraph.co.uk/technology/2 ... arch-says/

Not sure such a process could ever happen in the taxi/PH trade.

We are not generally known for our ability to work together to increase our earnings.

Usually its a case of the trade doing it's best to cut each others throats.

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IDFIMH

I a city the size of London or New York I wonder how many UBER drivers would need to log off in order for surge pricing to come into force?

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Grandad,

these are university researchers NOT gutterpress hacks so there is a chance their data might actually be correct. In this day and age with things like whatsapp and facebook it might not be that difficult to organise

OR conspiracy theory Uber and the drivers working together to increase prices and hence profits. I know he is gone now BUT Kalinick came across as the sort that would sell his own granny if he could make money on her

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lack of modern legislation is the iceberg sinking the titanic of the transport sector