Sussex wrote:
Quote:
But suspect the bringing forward of T2 and the T3 'super' rates by two or three hours will be more likely to cause grief.
And likely to ensure there are sufficient drivers out at those times to meet demand.
I daresay you're right, but on the other hand there are strong indications that supply at that time of night is fairly price inelastic
so it wouldn't really help in that regard.
And, who knows, might just add to the problem of clogged up ranks and drivers unable to find a space, except for maybe half an hour when the pubs chuck out.
That's been an ongoing problem here over the years, although mabye not quite so bad at the moment because there's simply not so many cars out late at night, but I think that's partly due to lack of work, and partly due to fewer drivers, rather than fares being too low.
(My basic understanding of economics suggests elasticity is the degree to which the market responds to price increases, either in terms of supply or demand.
So you could say that in the early hours dealing with drunks, supply is inelastic, because basically a lot of drivers won't do it at any price, or at least they'll only do it at a huge fare premium.
As regards demand, those using the Uber app on high price surging are price inelastic as well - they'd rather pay the price to get a car at short notice. On the other hand, some cab users are very price elastic, because they'll stop using cabs even because of a modest fares increase.)
Login
Register
FAQ
