
Uber is in strife of late for charging more at peak times - Uber calls it surge pricing. We don’t object paying more for a meal at a restaurant at dinner time rather than at lunchtime but the same people object to paying more for the taxi late at night where the driver must risk the dangers of solitary night-time work and picking up strangers who might have had a few too many.

Under Uber’s now-national policy, price surging is capped during disasters and states of emergency at the fourth-highest nonemergency surge seen in the previous two months.

We all expect to pay more for air tickets at peak times, such as school holidays and Christmas. Indeed, one reason we are able to delay booking is we know seats will be available because they are selling at a premium for those who booked late. Others who make their plans early quite enjoy getting the cheaper for early bird bookings.

Is surge pricing another name for over time and night and weekend pay? Union contracts provide for overtime pay, if you work more than the specified 8 hours a day.
The Holidays Act in New Zealand provides that if an employee works at the weekends, they are paid at 150% of the normal rate; and double party on public holidays. Not many employees object of this wage premium for work in it inconvenient times. Cafes and restaurants routinely charge of 10-15% price premium on public holidays to cover this overtime pay.

As would be expected under the theory of compensating differentials, there are wage premiums for jobs where the worker must work at inconvenient or unsocial times, in jobs with a greater risk of injury, or otherwise work more unpleasant than the average.

Viscusi estimated the wage premium for hazardous jobs to be rather large in the United States:
The extra pay for job hazards, in effect, establishes the price employers must pay for an unsafe workplace.
Wage premiums paid to U.S. workers for risking injury are huge; they amount to about $245 billion annually (in 2004 dollars), more than 2 percent of the gross domestic product and 5 percent of total wages paid. These wage premiums give firms an incentive to invest in job safety because an employer who makes the workplace safer can reduce the wages he pays.
Those who don’t like Uber’s surge pricing can always hail a cab. As I remember from American TV programmes, at peak times, prospective customers on the side of the road hail cabs at peak times with several fingers raised to indicate how much more than the standard fare, they are willing to pay.

There is nothing new under the sun. Uber’s app allows you to do the price bidding for a taxi on your cellphone rather than out in the cold
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