Price Discrimination- a new approach followed by Uber

The US gigantic ride-sharing service Uber follows a unique way of calculating the fare amount and it is based on a list of factors. On the other side of the flip, this calculation has been met with the mild outrage which is popularly known to be the “price discrimination”. This new concept mainly calculates the difference between the value of the customer that pretends on a product and how much amount they actually pay. The enterprises execute this by charging different prices to different people and capitalizing the differences in the context of willingness to pay the amount. If the ride-sharing Company Uber new pricing concept enters the market or if it reduces the customer waiting times then the price discrimination could increase the society’s overall welfare.The Price Discrimination is the method of charging different types of consumers different prices for the same product or the service. Even though the mechanism is a different one, the main aim is to exploit the different WTP (Willingness to Pay) between the customers and thereby increase the profit. WTP initially describes the maximum amount for a customer that would pay for a specific product or a service. It represents a chance so that the organizations may exploit through the price discrimination. There are major three types of price discrimination such as first degree, second degree, and the third degree. This first one mostly generates the profit and it involves each customer paying the maximum price. The Second-degree price discrimination involves giving a discount for a huge list of purchases. The Third Degree involves of selling the same service to different segments of a market which are based on the willingness to pay.

Google’s Waymo stands at the top position in the emerging Market

Google’s self-driving car unit which is known to be Waymo, is more beneficial that of the General Motors and Ford. The real fact is that Waymo is worth about seventy million dollars and it has signed an agreement with the Lyft in order to launch the pilot program for the self-driving cars. This partnership came into reality because that Waymo could launch more cars and also drive the autonomous transition. Waymo is more worth than that of the General Motors which is that of forty-four billion dollars, Ford which is of thirty-five million dollars and Tesla which is of fifty-one billion dollars. Google’s self-driving unit establishes about three million self-driving cars which are about sixty-five thousand miles a tear each of by the year 2030. The Enterprise value is a measurement one which is calculated using the market capitalization, debt, and cash.The fleets of electric and the self-driving cars are mainly used to pick up the passengers and the shuttle’s main purpose is to drop the folks in offices and stores. These cars can pick up the passengers from anywhere and the count is about twenty passengers at a time. The major advantage is that it the cost is less and it is more convenient one than owning a car. The cities with this great urban transportation in future include the cities like London, Shanghai, and Singapore. Generally, these cities have dense populations and a recognized public infrastructure. Not all the cities will develop this urban transportation.