How Uber is able to exploit our desperation

An Uber staff member has revealed the app knows when our phone battery is low and that weâre more likely to accept higher charges when phone death is imminent.
Prices on the ride-sharing app increase â or âsurgeâ â by two, three and even nine times the normal fare at times of peak demand, ostensibly to entice more drivers onto the roads to ease the backlog.
Professor Keith Chen, head of economic research at Uber, revealed last week to podcast Hidden Brain that the company receives a âtremendousâ amount of information about users â including when their phones enter low battery mode.
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He denied that Uber uses that information to its advantage (âWe absolutely donâtâ), but said the company had identified it as âone of the strongest predictorsâ of whether customers will accept surge pricing.
âOne of the strongest predictors of whether or not you are going to be sensitive to surge â in other words, whether or not you are going to kind of say, âOh, 2.2, 2.3, Iâll give it 10 to 15 minutes to see if surge goes awayâ â is how much battery you have left on your cell phone,â Prof Chen said.
âWhen youâre down to five per cent battery and that little icon on the iPhone turns red people start saying, âWell, I better get home, because I donât quite know how Iâm going to get home otherwiseâ.â
âThe new worldâ
Richard Gruner, associate professor in marketing at the University of Western Australia, told The New Daily Uber users werenât likely to be happy at the news their phone battery was shared with the app.
âI think at the moment people would be upset to know that,â he said.
âWeâre still quite scared of the new world where everythingâs connected to everything else.â
Assoc Prof Gruner said it made a lot of sense for companies to mine us for highly personal information, because context is valuable.
âIf youâre in a hurry youâre willing to pay more. For marketers it makes sense to actually know the context of their consumers.â
Despite Uberâs claim that it does not tinker with pricing based on usersâ batteries, Assoc Prof Gruner said in the future consumers will get used to a more âone on oneâ relationship with companies.
âThereâs no reason why every carton of milk canât have a little chip that sends a message that weâre running low, and we would like some delivered.
âIt will be a much more tailored approach.â
Inside the consumerâs mind
As well as being willing to fork out for surge pricing up to nine times the normal fare when our phone battery is waning, weâre more willing to pay in odd numbers, Uberâs Prof Chen revealed last week.
âMore people take a ride at 2.1 [times the normal price] than they do at 2.0. In others words, theyâre willing to pay more,â he said.
Assoc Prof Gruner said research suggested we choose the odd number because itâs more specific, and looks like some effort has gone into choosing it.
âConsumers are fully aware that $1.99 is really $2, but they prefer it because it looks more considered,â he said.
âLots of things happen in the subconscious when youâre standing in the rain waiting for your Uber to arrive.â
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