What would the rabbis say about Uberâ??s surge pricing? The question might sound like a joke; but in fact, the issue of whether it is fair to charge higher prices at moments of special need was directly addressed in this weekâ??s Daf Yomi reading. Uber, the car service, has gotten a lot of bad publicity for raising its prices two or threefold during times of great demand, such as during Hurricane Sandy, or on New Yearâ??s Eve. The company defends itself on the grounds of supply and demand: The higher the charge, the more drivers will come out to work, and the more people will be able to find rides. But this convenient explanation hasnâ??t silenced Uberâ??s critics, who feel that there is something inherently wrong about hiking prices for a service when people most need itâ??what we usually describe as price gouging.
In Yevamot 106a, the rabbis considered an analogous situation, which even involves a method of transportation. Say that a man is running away from prison, and he comes upon a ferry. To convince the ferryman to take him across the river, he agrees to pay a whole dinar, much more than the usual price. Is the escaped prisoner bound to honor the agreement? In other words, does the ferryman have the right to charge a higher price to a passenger who is in dire straits? The rabbisâ?? answer is no: â??The ferryman receives nothing other than his usual rate.â? The passenger is even entitled to say to the ferryman, â??I was deceiving you,â? since he never intended to pay the whole dinar. The ferryman, in some sense, deserves to be lied to, since he is trying to extort an unfair profit. Try that with Uber next New Yearâ??s Eve and you wonâ??t get very far, but at least you will have Talmudic sanction.
Read Full Article »