• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

Why the surge-pricing fiasco is great for Uber

By
Jessi Hempel
Jessi Hempel
Down Arrow Button Icon
By
Jessi Hempel
Jessi Hempel
Down Arrow Button Icon
December 30, 2013, 1:22 PM ET
Add Fortune on Google for similar content.

FORTUNE — On Dec. 14, as heavy flurries and hail pounded pedestrians on Manhattan’s streets, cookbook author Jessica Seinfeld — wife of comedian Jerry — shared an Instagram photo of a taxi receipt for $415, to which she appended the following tags: “#OMG #neverforget #neveragain #real.”

This was no ordinary taxicab. That night, Seinfeld had used the mobile application and driver dispatch service Uber to transport her kids to a sleepover and a bar mitzvah. Inclement weather had predictably ratcheted up demand for rides in a town teeming with pedestrians. The shocking bill came courtesy of Uber’s controverial surge-pricing policy, which multiplies fares as demand escalates. That night, prices more than octupled.

From a business perspective, the Saturday night storm could not have been more perfect for Uber: New York City’s already vibrant nightlife was augmented by a spate of holiday parties, presenting commuters with a difficult decision: drive on icy roads, take the delayed (and packed) subway, brave the elements with the hope of hailing one of the few empty taxicabs on the street, or have Uber dispatch a driver at your service?

So goes the oft-repeated maxim: You can have anything, for a price.

Though Uber’s mobile app issues a warning for heightened fares before it processes a request, Uber customers accused the company of price gouging. They commented, tweeted, and e-mailed their disdain for the practice, with comments like this one from @juliesschapiro: “That is robbery!”

MORE: The one move that might put Uber in the fast lane

Yet three weeks after the fact, an Uber spokesperson confirms the service has seen no slack in demand in the New York City market. Riders are still riding. You could argue that Uber received a ton of free advertising in the wake of the storm. And it didn’t even have to pay Jessica Seinfeld for her celebrity endorsement.

Hang on a minute. Endorsement, you say? Didn’t she complain about the service? She sure did — as did many other influential New Yorkers. In doing so, Seinfeld and other notable people who enjoy sizable online audiences (such as venture capitalist Mo Koyfman, with more than 17,000 Twitter followers, and NBC sports reporter Michelle Beadle, with more than 823,000 Twitter followers) revealed that they use the service.

So goes another oft-repeated maxim: Any press is good press.

Despite what Uber’s early marketing slogan (“Everyone’s Private Driver”) would have you believe, the service was never intended for everyone. Few people actually have a private driver; that’s what makes Uber feel like such a luxury. Co-founders Travis Kalanick and Garrett Camp started Uber in 2010 because each wanted to be a “baller in San Francisco” — that is, to be able to push a button and summon a driver with a “classy ride.” Uber’s website reinforces the service’s upscale market positioning with monochrome images of a beautiful man and woman and slogans urging visitors to “Be the Boss” and “Arrive in Style.” The message: We’re a cut above your typical car service.

MORE: Uber responds to ‘striking’ Boston drivers

In the last year, Kalanick changed the way he talks about the company. He now says Uber is “a cross between lifestyle and logistics.” What is the Uber lifestyle, you ask? Consider the marketing stunts the company has employed to reinforce its brand. Last summer, Uber offered to fly customers to East Hampton by helicopter for $3,000. Uber is the official wheels of the players’ union for the NFL. (A rookie player’s minimum base salary for the 2014 season: $420,000.) Earlier this month, the service partnered with Home Depot (HD) to deliver Christmas trees in a handful of cities; for $135, Uber coaxed customers to “pour yourself an extra glass of eggnog and watch your app” while the service delivered a seven- to eight-foot-tall netted Christmas tree with stand and gift — no Clark Griswold antics necessary.

Uber never promises affordability. It promises glamour, convenience, and a dash of outrageousness.

In this way, Kalanick is the ultimate spokesperson for the service. Some CEOs apologize to irate customers even when their businesses are not necessarily at fault. Kalanick chooses to place the fault right back on his customers. In response to a customer that was angry about surge pricing, he wrote: “So, was it expensive. It was, and we wish it wasn’t necessary. But if you did indeed take the rides described then you confirmed the price which was very up front, and then entered the multiple you read into a text box in order to double confirm.” Translation: You’re the dope, not me. You could have chosen to take the subway. (Kalanick then posted the entire exchange to his Facebook page, with a wry suggestion to his followers to “get some popcorn” before reading.)

MORE: Hey, taxi company, you talkin’ to me?

Surge pricing exists in many businesses. Drivers see it in action every day at the pump. Restaurants and live entertainment have dabbled in it. And the transportation industry uses it extensively for ticketing. In another update on Facebook, Kalanick pointed out that his $660 one-way flight from San Francisco to Los Angeles on Christmas Eve cost just $58 if it were booked two weeks later. “11.3X surge pricing,” he wrote drily. “Calling FBI/FTC/BBB/Valleywag to vent grievances.”

This won’t be the last time that Uber gets called out for its massive price hikes. Just this morning, as it has in years past, the company published a note instructing customers that surge pricing would be in effect during New Year’s Eve celebrations. “We’ll have a record number of cars on the road ready to get you where you want to go,” the note says. “But, that doesn’t change one simple fact: on NYE, everyone wants to move around the city at exactly the same time!”

“It’s at 12:15 a.m. in cities around the world when the demand just way outstrips anything that supply can bring to the table,” Kalanick added in a video explaining the holiday. “If you absolutely need a ride between 1 and 3 a.m., Uber will be very reliable. But it will be a pricey ride, and you just have to expect that.”

That night, as the confetti falls and the champagne flows, some people will notice Uber’s mile-high prices and recoil in horror. Others will shake their heads in reluctant assent. And others still will get a rush of dopamine in response to the outrageous figure before them — the feeling that they are part of an elite group of high-rolling ballers, the kind of aspirational folks for whom Uber is really designed.

Seinfeld next posted to Instagram two days later. With 851 likes, the image featured a close-up of a burlap pillow with the following embroidered in formal cursive: “Because I Fucking Can.”

About the Author
By Jessi Hempel
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
InvestingDonald Trump
Trump’s 927-page disclosure is just a normal Tuesday for direct indexing and crypto wealth managers
By Catherina GioinoJuly 1, 2026
2 hours ago
US President Donald Trump sits in silence with his hands folded on top of each other.
CryptoDonald Trump
Inside Trump’s $1.4 billion crypto empire: Altcoins, Bitcoin—and a stake in Michael Saylor’s Strategy
By Camila Grigera NaónJuly 1, 2026
3 hours ago
The 6 Best Exercise Bikes of 2026: Fitness Expert Reviewed
HealthDietary Supplements
The 6 Best Exercise Bikes of 2026: Fitness Expert Reviewed
By Christina SnyderJuly 1, 2026
3 hours ago
Mark Zandi, Moody's chief economist.
EconomyU.S. economy
‘It’s fair to ask whether it was worth it’: The Iran war has cost Americans $1,000 per household—and that’s a conservative estimate, Mark Zandi says
By Tristan BoveJuly 1, 2026
6 hours ago
Melania Trump NFT earnings surge 28x in 2025 as first lady rakes in nearly $17 million in total earnings, filing shows
PoliticsDonald Trump
Melania Trump NFT earnings surge 28x in 2025 as first lady rakes in nearly $17 million in total earnings, filing shows
By Mia OsmonbekovJuly 1, 2026
6 hours ago
Donald Trump sits at his desk in the Oval Office, smiling and with his hands folded in front of him.
PoliticsDonald Trump
Trump got a $78K pension from the Screen Actors Guild in 2025 because he appeared in Home Alone 2 in 1992
By Sasha RogelbergJuly 1, 2026
8 hours ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
17 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
15 hours ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.