To survive, the game of business needs to update its rules | Tim O'Reilly | Pulse | LinkedIn
Uber’s argument is that the algorithmically determined cost of a ride is at the sweet spot that will drive the most passenger demand while also providing sufficient incentive to produce the number of drivers to meet that demand. And because driver income is the product of both the number of trips and the rate paid, that sweet spot will also maximize driver income. Any attempt to set rates to specifically raise driver income would suppress rider demand, and so reduce utilization and thus wages.