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Case Study

Uber Technologies, Inc.: Surge Pricing and Consumer Reaction

Tonongbe, G., Pontarelli, A., O’Rourke, J.S. (editor)
December 6, 2023
SKU:
BUS-009720
Region: 
North America
Topic: 
Ethics & Social Justice, Strategy & General Management, Operations, Information Systems
Length: 
17 pages
Keywords: 
Uber, Surge Pricing, Dynamic Pricing, ride sharing, RIde-Sharing, Fair Pricing
Student Price: 
$4.00 (€3.69)
Average rating: 
0

Ride-sharing giant Uber Technologies, Inc. has begun using algorithms to employ dynamic pricing strategies, popularly known as surge pricing. The company, long viewed as a disruptive force in the collaborative consumption sector now faces controversy, as well as legal and regulatory challenges. While surge pricing aims to optimize supply and demand, stakeholders’ perspectives vary widely, prompting debate on fairness and unpredictability. Can surge pricing become more equitable and beneficial for all parties involved. 18 pp. Case #23-06 (2023).

Learning Outcomes: 

1. To define the concept of surge pricing, a strategy used in various industries especially the ride-sharing industry, and explain how it operates.

2. To provide insights into the evolution of a company, from its inception and growth to the challenges it faces, offering a broader perspective on the development of a business. 

3. To offer an analysis of an industry characterized by rapid growth and transformation, emphasizing the key factors driving its expansion.

4. To provide an understanding of how algorithms influence pricing decisions in surge markets, regardless of the specific industry.

5. To explore the legal and regulatory aspects that affect businesses operating in surge markets, demonstrating their potential impact on operations.

6. To discuss the ethical dilemmas and considerations related to pricing strategies, along with strategies to enhance customer experiences in variable pricing environments, applicable to a range of industries.