alt Hacker NewsPeople like the knowledge that they are not being ripped off by the person they are interacting with. On Uber you are essentially guaranteed that you are paying the absolute max that you would accept algorithmically, and the driver is getting the absolute least they would accept to drive for. If the balance shifts in any way, someone is ripping off the person they will interact with.
Since the customer knows less about how much things should cost, they are more likely to be ripped off. People pay a 30% premium to ensure that they dont feel ripped off alone.
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That means Uber is screwing the driver and customer the algorithmically maximum amount. It should be less, and it should be in the driver's favor. They should be able to afford a decent living.
While I agree, Uber's cut has reached predatory levels. They take 50% of the fare in some markets. They're significantly overcharging riders and underpaying drivers. https://len-sherman.medium.com/ubers-long-and-winding-road-t...