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That supply-and-demand surge pricing argument has become a common refrain for the company, which has occasionally bumped up against public resistance to its shifting fares. “Seven decades of fixed pricing in car transportation is a lot to unwind in a night,” wrote Uber CEO Travis Kalanick in 2012.
What is Uber’s surge pricing?
Uber’s pricing algorithm automatically detects situations of high demand and low supply and hikes the price in increments, depending on the scale of the shortage. Those higher prices are supposed to make drivers more likely to bite, putting more Uber cars on the road when they’re most needed.
“At some point the east coast cities started breaking 6x multipliers—we accepted defeat at that point—the unbending demand breaking our will. We would bring cities down to 3x, only to see conversion go up, supply go down, cars get saturated, and “zeroes” popping everywhere.” Zeroes are Uber’s term for riders who open the app and see no available cars in their area.
Does “surge pricing” get more drivers on the road?
The basic principles of economics would dictate it does — as would Uber’s experience. According to a blog post by Uber board member Bill Gurley, the program has been a success since its inception in early 2012. Uber’s Boston team first tinkered with a price hike on weekend nights around 1 a.m., when drivers tended to clock out just as the city’s public transit system approached closing time, a situation that created lots of demand for Uber cars.
“In just two weeks they had a resounding answer,” Gurley writes. “By offering more money to drivers, they were able to increase on-the-road supply of drivers by 70-80%, and more importantly eliminate two-thirds of the unfulfilled requests.” Economists call this responsiveness to price “elasticity.” Uber’s service does appear to be unusually elastic, given that its fleet of drivers expands and contracts in real time.
Is there a limit to Uber’s surge pricing?
Uber recently announced an algorithm change that sets maximum surge pricing levels during states of emergency in the U.S. When disaster strikes, Uber caps fares at a price that matches the area’s fourth highest price over the preceding two months. Uber has also vowed to donate its 20% commission on rides during emergencies to the American Red Cross.
In non-emergency situations, surge pricing of six to eight times the regular fare have cropped up in moments of extreme shortages. The highest multiple ever recorded was 50 times the regular fare, or $57 per minute, due to an apparent glitch in Uber’s fares in Stockholm, Sweden, Business Insider reports.
$57 per minute? Is that even legal?
Yes, though it can skirt the boundaries of legality under extreme circumstances. At least 34 states and the District of Columbia have passed price gouging laws that forbid businesses from hiking prices in times of extreme emergencies. New York, for instance, can levy penalties of $10,000 for a business that marks up an “unconscionably excessive price” during an “abnormal disruption of the market,” such as Hurricane Sandy.
However, businesses can defend themselves by pointing to higher costs of supplying their service.
Does Uber worry about negative publicity from surge pricing?
As the hostage crisis in Syndey revealed, in extreme times of need, price hikes, rational as they may be, can also unleash a publicity nightmare.
Still, it seems no matter how hard Uber tries to explain its price system, riders’ final fare can still raise hackles. It’s practically become a meme on social media to post an image of a receipt for a three-figure ride, plus an expletive-laced tirade against surge pricing — despite the fact that the Uber app is very clear about surge pricing before users agree to a ride.
Uber’s hostage crisis pricing flap may prompt a review of Uber’s pricing policy under extreme circumstances. But for the rest of the time, expect Uber’s surge pricing to stick around.
Americans across a wintry continent have been viewing a major national television advertising campaign promoting the warm welcome awaiting them in the United States Virgin Islands.
Now the department of tourism is building on the momentum by releasing a series of video vignettes on social media, informing consumers and travel professionals of the hotels in the territory which are open and ready to welcome guests.
The six-week campaign, which showcases elements of the Real Nice campaign, highlights mid-range hotels on St. Thomas, including Bolongo Bay Beach Resort, Emerald Beach Resort, Lindbergh Bay Hotel and Villas, Mafolie Hotel & Restaurant, Point Pleasant Resort, Secret Harbour Beach Resort (above) and Windward Passage.
Gallows Point Resort on St. John is also featured.
The campaign will next shift its focus towards accommodations on St. Croix, which has received strong social media exposure in recent weeks through the Off The Beaten Path destination series.
AFTER their shock Champions League exit, Barcelona's focus returns to La Liga as they aim to seal yet another league title.
Lionel Messi and Co are unbeaten in the league this season and 11 points clear at the top.
But Valencia come here in stunning form, having won eight of their last nine league games.
The Nou Camp has been a relatively happy hunting ground for them - they've won here in two of their last six visits.
Is the game being shown on UK TV?
UNFORTUNATELY you won't be able to watch this game live on TV here in the UK.
That's because of the 3pm blackout, which prevents games between 2.45pm and 5.15pm being shown on the box.
It was introduced during the 1960s when Football League chairmen believed televised matches had a negative impact on attendances at games being played at the same time.
To keep up with all the action despite the ban, follow SunSport's dedicated LIVE BLOG which will provide you with all the goals and talking points.
THE game takes place on Saturday, April 14 at the Nou Camp.
Kick-off is at 3.15pm UK time.
Get your teeth pearly white without spending too much ~green~!!!
Ah, Amazon Prime Day. The day where things that usually take all my money only take *some* of my money, thanks to lots and lots of discounts!
But possibly the greatest one? Crest 3D White Professional Effects Whitening Strips are now 36% off!!!!
Why is that so exciting? These usually investment-worthy strips have made a colossal difference for thousands and thousands of people's teeth. They all said it was worth the price tag — so now that they're only $27.99 you 👏have👏 no👏 excuse.
There are ~44~ strips in total which believe you me last a LONG time!! Even if you use one once a day that's still over a month of these pups!
Need more proof? Look no further! They've earned 1,443 five-star reviews and a 4.2 star rating on Amazon!
I mean, how does it get better than looking like you got a $100 whitening treatment when in reality you sat on your couch for 30 minutes?
Other than peeling and placing these strips onto your teeth, the only other step is watching Netflix. That's not required — just a strong recommendation.
Not to mention now we can drink our coffee and red wine with ZERO consequences, thank you very much. Ok maybe not zero, but enough to make ya smile. Get it? I'm done.
So hurry up and get your own teeth whitening strips from Amazon for $27.99, because this chance will be gone in less than 24 hours!!!
Benjamin Netanyahu, Prime Minister of Israel, points to a bomb cartoon that illustrated his take on Iranian nuclear development when he addressed the 67th session of the United Nations General Assembly. Photo: UN Photo/J Carrier.
JPost – Prime Minister Binyamin Netanyahu said Monday that Iran has not yet reached the “red line” that he set last year at the United Nations with regard to its nuclear weapons program.
“Iran is continuing in its nuclear plan. They have not yet passed the red line I presented at the UN, but they are getting closer to it. We cannot let them cross it,” the prime minister said, while speaking at the Likud Beytenu faction meeting.
During a fight in Milford Saturday night, a man under the influence of intoxicants racked a shotgun round and pointed the weapon at another person, police said Tuesday.
Milford police responded to the area of Park Avenue and North Washington Street around 11 p.m. Saturday on reports of a fight. An officer saw an altercation there and heard yelling from the crowd there that someone had a gun, police said.
Police said they learned the fight was verbal but one of the men went to a car and got a shotgun, racked the slide and pointed it at the other man. They struggled until the shotgun was released from his hands, police said.
Police said the man with the gun was 32-year-old Milton resident Charles Larsen, Jr. Police said they released the other man involved when they learned more details.
Larsen was charged with possession of a firearm during the commission of a felony, two counts of aggravated menacing and possession of a firearm while under the influence.
Bail was set at $20,000 and was committed to the Sussex Correctional Institution. His preliminary hearing with the Kent County Court of Common Pleas is Friday.
Register at pacss.brownpapertickets.com. The early-bird registration fee of $50 will be available until August 15, after which registration will be $100. Contact us with any questions at pacss2018@gmail.com.
1:45pm – 3:30 pm Panel: Current Directions in Text as Data Panel: Coalitions, Factions, and Parties Panel: This Panel is (about) Fake News!
The data and methodologies available to social scientists have exploded with the emergence of vast archives of passive data collection, large scale online experimentation, and innovative uses of simulation. These data are of a larger magnitude and methods are of a greater computational complexity than approaches that have dominated political science for the last 50 years. This offers the potential for rich insights into society at scale, while simultaneously introducing new ethical and infrastructural challenges. In parallel, the information and communication technologies that have driven these changes are also driving changes in politics, around the world, that require study. In order to understand the political world, it is increasingly important to gain access to the political communication and behavior occurring online.
This conference is sponsored by the NULab for Texts, Maps, and Networks at Northeastern, the Network Science Institute at Northeastern; the Institute for Quantitative Social Science at Harvard University; and Sage Publishing. Special thanks to our Organizing Committee and Host Committee.
Alexandra Siegel, Stanford University; Jennifer Pan, Stanford University.
This Panel is (about) Fake News!
Can Fact-checking Prevent Political Lying? How?
Evidence from a Panel Survey Combined with Direct Observation of Social Media Activity.
Gary King is Albert J. Weatherhead III University Professor and Director of the Institute for Quantitative Social Science. He develops and applies empirical methods in many areas of social science research, focusing on innovations that span the range from statistical theory to practical application. He has been elected to 8 honorary societies and has won more than 40 awards for his work.
Las Vegas casino mogul Steve Wynn on Saturday stepped down as Republican National Committee finance chairman, according to three senior Republicans briefed on the decision.
The decision followed a Friday report in the Wall Street Journal alleging that Wynn engaged in sexual harassment.
Wynn, 76, was President Donald Trump's handpicked choice for the finance position. It has not yet been determined who will replace him.
"Today I accepted Steve Wynn’s resignation as Republican National Committee finance chair," said RNC chair Ronna Romney McDaniel, who spoke about the Wynn situation with the president on Saturday morning, according to a person with knowledge of the conversation. Trump returned from the World Economic Forum in Davos, Switzerland, on Friday evening.
During recent fundraising events — including one recent one in New York City — Wynn has praised Trump as a history-changing president in the mold of Lincoln and Reagan.
But the sexual misconduct allegations against Wynn put Republicans in an untenable situation after the RNC and other GOP officials had ripped the Democratic Party last fall for its connections to Harvey Weinstein, the disgraced movie mogul who raised and contributed large amounts of money for Democrats.
Wynn acknowledged the "distraction" caused by the controversy in a statement released Saturday.
"Effective today I am resigning as Finance Chairman of the RNC," he said. "The unbelievable success we have achieved must continue. The work we are doing to make America a better place is too important to be impaired by this distraction. I thank the President for the opportunity to serve and wish him continued success."
The RNC, which holds its annual winter meeting in Washington next week, was radio silent on Friday after the allegations against Wynn first emerged — as were most top Republicans. Democrats, meanwhile, seized on the political opportunity presented by the allegations against Wynn.
In Nevada, GOP Sen. Dean Heller — who is facing a competitive reelection challenge — immediately came under fire from Democratic Rep. Jacky Rosen, who called on him to disavow Wynn's endorsement and demand that Wynn step down from his RNC post.
Wynn has been a prolific Republican donor, particularly over the past decade: He has donated more than $2.5 million to the Republican Governors Association since 2012 and has been a top donor to several individual gubernatorial campaigns.
The casino mogul also contributed $411,000 to the National Republican Senatorial Committee over the past five years, $248,000 to the RNC and $100,000 to the National Republican Congressional Committee, according to campaign finance records.
Devon Spurgeon, a spokesperson for Mrs. Wynn, says she has “never sought to renegotiate her divorce settlement” and that the dispute involves a shareholder voting agreement.
Kevin Robillard, Maggie Severns and David Siders contributed to this report.
Moody (left), Zach and Malik Mattan at rear of The Elephant Room. An augmented reality mural (pictured below) is planned for the wall behind them.
A different kind of mural is coming to downtown Detroit this spring.
It's the imaginative creation of two entrepreneurial brothers who realized that, together, their very different skill sets could generate a product on the cutting edge.
Mahmoud "Moody" Mattan immersed himself in technology while working in San Francisco, where he made investments as an associate at Fenox Venture Capital and launched a virtual reality division for Powis Parker.
Signs of the times: Billboard and outdoor advertising has virtually disappeared from Detroit’s central business district. But the rules could change soon. Read story.
In 2016, Mattan returned to the Detroit area, where he was born and raised, to launch his own startup.
"I always wanted to start my own business," he said. "That came from my dad. He's always owned different businesses — a restaurant, a travel agency, a food distribution company — and we grew up working for them."
Another member of his family inspired him, too — his brother, Zach Mattan, who had launched a clothing line.
"Turns out that's pretty difficult," Moody said laughing. "Nobody bought the clothes, but people loved the hats and the pins that went on the hats."
Zach pivoted his idea and began collaborating with graphic artists and musicians to create specialized merchandise, such as pins, T-shirts and stickers, under the label Electrifly Collective. Another Mattan brother, Malik, joined him as a co-founder.
And Moody launched BrandVR, a platform for businesses to integrate virtual and augmented reality into their consumer marketing products.
When the brothers decided to work together, the idea for a moving mural was born.
A digital rendering of the mural after it is installed at The Elephant Room.
Virtual reality and augmented reality are often used interchangeably, but they aren't the same thing. Simply put, virtual reality refers to technology that is completely immersive — like putting on a headset and seeing a different world. Augmented reality positions something virtual atop of the real world — like using your phone's camera to see how an AR couch might fit in your living room.
Companies like Brand VR can create augmented reality products in real life by assigning a digital marker to a real-life object. When a viewer scans the object using an app on their mobile phone, it activates the marker, which can be programmed to move, create sound or transform on-screen.
The brothers' first big project is an augmented reality mural that will be equipped with digital markers — allowing passersby with mobile phones to activate the designs on their screens. After raising a successful crowdfunding campaign via Patronicity, Electrifly Detroit is working with local muralist Phyber to create the mural. Using BrandVR's app and technology, the mural will come to life.
"We were inspired by everything going on in Eastern Market with Murals in the Market, and everything going on in Detroit with the street art scene," Moody said.
To the naked eye, it's a mural. Through a screen, it will be a magical, moving masterpiece.
"I think of it more as public art than an advertisement," Zach said.
He recalls the reactions that the Electrifly designs made at last year's Dally in the Alley festival in the Cass Corridor. "We had a lot of cool reactions from really young kids, they were wowed and amazed by it. And then older people, they were really not sure what's going on, so they were wowed, too."
The augmented reality mural will be displayed on the exterior wall of The Elephant Room at 439 Congress St. in Greektown. Formerly Mr. Steven's, the building is undergoing a total renovation. The team is pushing for an opening date in early June, Elephant Room General Manager James Droze told Crain's.
"We ran into Moody and Zach Mattan at Dally in the Alley at their Electrifly booth," Droze said. "After seeing their app, we started talking about how we could apply that technology to something bigger, like a mural. We had a wall to feature the work in a high foot traffic area, as lines for shows at The Shelter generally convene near it."
The mural isn't just about aesthetics. Visitors will be instructed via signs to download an app to view the mural's augmented reality features. Downloading the app will also unlock a special coupon at The Elephant Room. It's a marketing tactic that Moody believes can drive foot traffic to the bar.
"Since the coupon deal (is) exclusively available through the app, it's going to be seeing a lot of interest," he said. "The mural going to look good and bring them a lot of new customers."
An augmented reality mural in downtown Denver by artist Chris Dyer.