An algorithm driven surge pricing is used by Uber, and this is done to balance supply and demand in its networks. The essay argues that Uber’s surge pricing is a fair, just and moral pricing.
Firstly, the ultimate goal of any business is to meet the requirement of the consumer. Now when a client wants a vehicle in a normal network with no demand, there could be so many amounts of Uber vehicles to pick them. On the other hand, when there are more users and fewer vehicles, then some clients have to wait for a longer time for drivers to get assigned to them. Therefore, by giving drivers the incentive to move from less demand zones to more demand zones will help the customer cut short on their delays. The ultimate goal of the customer is hence met by surge pricing and hence it is fair. It could be argued that some other incentive could be given to the driver or some rule could be placed that drivers have to move to network points that are high demand. Drivers could be expected to act morally and dutifully to help the passengers in the congested zone by travelling an extra distance to pick them up. However, this will or will not have the needed outcome, and drivers could end up accruing fuel charges which would not be fair to them. Therefore, surge pricing becomes necessary.
Surge pricing however becomes amoral when surge pricing is used even in the context of say some national disaster. In this context, to use surge pricing in a situation when the people are already caught in a disaster and will not be able to pay does not make sense. It would be unfair to use surge pricing in such situations.