Uber, the highly popular ride sharing mobile app-based company is at it again. Uber has been in the news for all the wrong reasons. First and foremost, there’s a report of a fatal accident involving an Uber driver. While we have said before that even though this accident is tragic, it shouldn’t really take the luster off the sheen of the sharing economy. If you look at accident statistics, there are probably more accidents involving traditional taxis. The second reason why Uber has been making the media round is the fact that it practices surge pricing. This is a smart move. If the demand of a particular service or product goes up, the price shouldn’t remain static. The price should go up depending on the demand, and that is precisely what Uber is doing. When there is harsh weather or there’s just too much volumes for Uber’s distributed driver network’s services, their per ride pricing goes up.
The latest news regarding this fast-rising company is that it’s doing some hit-and-run tactics to poatch drivers. Basically, according to reports, they would call some arrival company’s drivers several times regarding rides, and then they would cancel them. The effect of this would be to push drivers ostensibly or implicitly to Uber. The company is on the record saying that this is “likely too aggressive.” Our position is that, hey, it’s a competitive world out there, and it does happen that real customers would call and cancel, that’s just a fact of life. Uber is doing well because it is a very well put together concept. It remains to be seen whether the company will go public this year or next. Be that as it may, the window of opportunity for IPOs is fast closing. Why? Looming China’s default crises, looming death crisis in Asia, possible further economic slowdown in the United States and the implosion of the Euro in Europe. As we have been writing all along, there’s a possible perfect storm showing up in the horizon and the way the federal reserve and global center bankers have been creating a liquidity bubble might actually blow up the global economy. Stay tuned.