The Controversy Of Uber's Surge Pricing Model

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Uber is a transportation company that was created in 2009. It is a new way for people in cities to have transportation by connecting customers directly to drivers through an app (“About Uber”). Uber divers are paid through a surge pricing model. Surge pricing occurs when the demand for drivers rises, causing the price for the drivers to rise accordingly. Uber claims surge pricing helps to motivate drivers to work in bad conditions. Sometimes New Yorkers are expected to pay as much as eight times the base line price for a driver when demand increases, such as during bad weather or holidays (Inae Oh). This tactic became very controversial when Uber’s surge pricing went into effect during Hurricane Sandy in October of 2012. As people were trying …show more content…

According to this theory, there are no absolute right or wrong answers to ethical questions, only standards set in each and every unique culture. So one person cannot judge another person’s actions as morally wrong if those actions are acceptable to the other person’s culture. Within this theory, decisions about right and wrong only depend on the social norms in a culture, and these social norms cannot be imposed on people from outside one’s culture. No culture can be superior to another culture, and no culture’s practices can be judged immoral by comparison to other …show more content…

But there seem to be a few different sets of norms that could have influenced this decision. First, there is the expectation that during a national emergency, people would come together and help each other as much as possible. This would have influenced Uber to keep the prices low during the hurricane. But another expectation prevalent in the US is that businesses are cutthroat and often take advantage of their customers to maximize their profits. So if Uber were influenced by this expectation, we would see the prices to continue to rise, even during a hurricane. So Cultural Relativism could have a number of outcomes for Uber’s decision. The second ethical system to examine is Ethical Egoism. In this theory, the main influence for decisions is to create a better life for oneself. Ethical Egoism promotes selfish behavior and rejects altruism because it claims altruism is the opposite of the natural order of things. According to this theory, altruism provides help to those who don’t deserve it, and it can create a dependence on others. But if people pursue their own interests and focus on bettering themselves, society will benefit as a

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