UBER

Introduction ...

The world of business survives on a simple concept of supply and demand in that the charge for supply can vary based on how many people want that supply.  However, this is regulated to stop price gouging, greed, extortion, fraud, misrepresentation and like unlawful actions by specific verbal or written contractual obligations on concluded agreements protecting the so-called weaker party.  Not all is fair in business.

In simple terms, both parties must agree to any transaction for it to be legal otherwise anyone could bill anyone and expect payment with no recourse.

A seller has little obligation to supply at a price other than when advertised at a certain price which leaves a vast grey area when the price is advertised as a variable based on demand.  

Enter ‘surge’ pricing from UBER.  UBER says that their surge pricing is designed to get more drivers into areas of high demand thereby supporting those wanting to travel.  On a prima facie test this would seem logical in that drivers would flock to ‘surge priced’ demand locations thereby increasing their revenue and basic supply.  But this would also reduce supply from other areas as demand goes unmet resulting in those areas also suffering surge pricing because demand exceeded supply and Uber’s algorithm kicked in.  A vicious circle not benefiting customers in any way shape or form but hugely benefitting Uber and their drivers.  Surge pricing just follows demand.  Uber obviously target demand areas and automatically add surge pricing which creates further areas of demand because supply has left to chase the first area.  A ‘self inflating’ cycle.

Imagine if this surge concept applied to the average supermarket ... “Sorry Madam but your bill was for $23 but because there was a queue of 4 people waiting to pay there will be a surge charge of 4 leaving you a bill of $92 but as we already have your credit card on file it was automatically deducted.  Have a nice day”... If Madam had accepted this surge in full and absolute knowledge before the event then she was accepting paying $92 for a $23 bill.  But if the surge is not known or accepted before the event then it’s unlawful. 

However, law surrounding extortion, fraud, blackmail, price gouging, deception and misrepresentation can mitigate Madam’s problem.  Is it extortion to charge 4 times a normal price when demand is high or is it just normal business practice?  I suspect the latter albeit we all have a choice not to shop at that supermarket or ride with Uber as companies extorting clients [extortion - a demand without a reasonable cause with an intent to gain a benefit]. There is a difference between demand pricing and fee gouging and a huge difference to charging after the fact without consent.

 

Case study ...

In our case, we accepted a confirmed charge of $115.32 as a concluded agreement by phone app despite Uber’s surge pricing of 3.9 because we had little choice.  Uber’s algorithm had calculated the fare based on known traffic conditions.  Pay 4 times the fare or walk!

What we didn’t expect was a further loading of 50% with a charge of $57.55 deducted from the credit card without our knowledge or consent.  We had not accepted this further charge.

This final fee was a clear misrepresentation of our already concluded agreement.  It was and is tantamount to fraud.  Intentional theft of funds without consent.

Conclusion ...

Before travelling with Uber make sure you know what is being charged and make sure it is accepted as a concluded agreement and don’t accept ‘after the fact’ charges.  Better, support normal taxi drivers.

CAR INDUSTRY

When do we start taking the initiative and look outside political and media driven doom and gloom? 

When do we start to believe in our own Australian expertise and stop flailing about in discontinuous rage as another ‘foreign’ company withdraws ‘hurt’ when the going gets tough but after profiteering for years on uneven playing fields at the expense of our country?

When do politicians stop trying to assure the yet to be unemployed that they are trying to create new jobs through all sorts of ill-thought-through initiatives to make themselves look important and to be seen as doing something? 

Instead  …..  why don’t we bite the bullet and produce our own cars and other vehicles?

We will soon have 3 newly vacated plants which do and can produce cars.  Why don’t we produce our own world leading new-design taxis, government cars, town cars, military vehicles, scram jets, super tractors, planes, farm bikes, fun cars [Moke-a-like] or any other vehicle which is useful for us as a country and can be sold elsewhere?  And no, don’t call any the Kangaroo or the Wallaby or the bloody Dingo!!

I am really sick of the prevailing oh-woe-is-me attitude where we import expertise [because we are so backward, stupid and don’t have any talent] only to find the imports are wanting [EG. The Mexican triumvirate at Telstra or multiple managers at Coles Myer or several Australian icons currently in trouble with imported management].

We have sold our soul to foreign manufacturers who can’t manage a decent profit other than the ‘incentive fees’ we pay them [Ford worldwide a couple of years ago].  And, we accept foreign management just because they are foreign and must therefore be much better than us.

This is utter bullshit!

Abbot and Shorten – how about working together with an Australian collective spirit and foster/create/allow the creation of something special?

We are really that good!!

Yes?

How about starting by immediately enforcing Australian only isles at supermarkets?

Santorini

Gods and Troglodytae muse within slingshot on beautiful Santorini.  Gods languish on the caldera whilst cogitating cave dwellers peer out of their carved doors on the, far far side.   However the third, and often overlooked, species is the humanoid identified by their unique method of encasing dangly bits.  These interlopers in the realm of the Gods maintain their omnipresent force by threatening and indeed scaring the cleaner than clean Gods and their somewhat scruffier and hairy nemesis, the Troglodytes , by displaying their bodily armour for all to revere.

Everyone watches the sunset, including the undies, in Santorini.

Photo and original words by Jon Langevad

Virgin Vs People - Read down to Virgin's response

We returned from Bali to Melbourne last Wednesday night on the Virgin ‘red eye’ leaving Bali around 10pm and arriving around 5am on Thursday.

We flew what is euphemistically known as ‘cattle class’.  Virgin unfortunately took this description as a mandate to treat people as just that – cattle.

I am just over six foot and I had ‘zero’ leg room with my knees pressed hard against the seat in front.  Surly this is against health and safety regulations because the only way I could get into or out of my seat was to drop in sideways using the seat in front as support.  No leg room means no movement, cramps and the increased possibility of deep vein thrombosis and swollen ankles.  The gent next to me tried to put on support socks but the only way he could achieve this was to literally stand on the seat.  He was well into his sixties.

The chocolate mousse and the pasta on the way over were inedible as was the chicken casserole and the ‘sweet’ bread roll on the return flight.  Why do Virgin proffer this rubbish when there is so much cooking talent in Australia capable of producing great ‘airline’ food?

For a night sleeping flight there were no blankets, no entertainment and seats which reclined all of about two inches and being literally jammed in.  Unable to move, the bloke next to me farted all flight, the one in front was constantly and loudly cleared his sinuses and a woman two people away threw up several times during the flight. Cattle.

When the ‘fasten seat belt’ sign came on staff locked down the cabin and allowed no-one to move from their seats including going to the toilet.  Strange that this lockdown occurred just prior to meal service on both flights and was rescinded just after service.  Could it be that staff are using the seat belt sign to make their job easier?

Attitude by staff was appalling.  When the meal or drinks trolley was pulled and pushed up the isle there was no thought for tired jammed in people with an elbow in the way remembering as the cart came from behind one cannot see the approach.  Twice I was hit by the cart with no apology.  It seems staff think they have a mandate to treat people as cattle.

But, by far the worst example of Virgin’s systemic attitude towards clients was when my partner went to join the toilet queue prior to landing.  After 10 minutes creeping up the line she was about to enter the toilet when the male staff member told her that there was no time for her to go to the toilet and to return to her seat.  The fasten seat belt sign did not come on for another 5 minutes.  This is insane and shows quite clearly what Virgin staff think of their customers – cattle.

Facilities, service and importantly, staff attitude was and is appalling.

Virgin should be paying us to suffer this sort of treatment.

Virgin’s response from Katharine Molloy  with my comments in red …

Dear Mr Langevad,

Firstly, thank you for your feedback and taking the time to let us know of your recent experience.

After reading through your feedback, I would like to take this opportunity to offer my sincere apology for any disappointment you felt with our Economy class and In Flight experience on your flight from Denpasar to Bali. May I suggest that the disappointment I felt was caused by Virgin – there is a direct cause and effect. Do not try and distance yourself from blame.

Firstly, our cabin crew are trained to provide outstanding customer care on board at all times and as we take great pride in our team members, it is concerning to read of your dissatisfaction with the level of service provided. As such please rest assured  your individual comments have been distributed to the relevant Cabin Crew managers, this will enable them to provide further training and coaching where necessary. It is not enough to blandly say that your staff are trained when it is very obvious that they are not.  You cannot take pride in rubbish.  Telling the managers has nothing to do with the service I was provided – it may affect future customers but I still suffered at the hands of incompetent staff and as I paid for and expected reasonable care and attention, Virgin failed and did not provide the product for which I paid.  If I may make a suggestion, never use the phrase ‘rest assured’.

It is also with regret to learn of your disappointment regarding the lack of In-Flight Entertainment (IFE), poor quality meals and restrictive seat dimensions. We strive to ensure all of our guests have an enjoyable and pleasant experience with us so it is with concern to learn this was not the case for you on this occasion. Once again, my disappointment was caused through Virgin providing rubbish food and not providing even barely adequate leg space.  This is a failure to provide a product for which I paid and I believe dangerous.

Mr Langevad, to clarifying, regrettably IFE is not always guaranteed on our aircrafts, is stated in our terms and conditions on the Virgin Australia website and is also noted and agreed to at the time of booking. Fine.

I can also advise that we are constantly reviewing our product offering in order to improve our services. Your feedback in regards to seat dimensions and unsatisfactory meals has given us key areas of focus in order to enhance our guest's experience and your comments will be taken into consideration when developing further enhancements to our product offering.  I am sorry to say this Katharine but this is banal crap.  I am not trying to enhance your guests experience, I am telling you that the experience I received was well below par and I believe dangerous.

I do hope you give us the opportunity to welcome you back on board one of our flights in the near future, and provide you with the high standards of service we pride ourselves on. Katharine, I paid for and expected a level of service and amenity consistent with advertised parameters.  I did not receive that and hence expect a refund.  I have already published my complaint on Trip Advisor and my blog.  To even say that you have high standards which you pride yourselves on is insulting to us and does indeed show a lack of care or indeed even an intelligent response.

As I said, Virgin has failed to deliver a merchantable product which I paid for.  For this I expect a refund.  Secondly, I expect Virgin to offer more than banalities.  I find your supercilious attitude insulting and appalling given the seriousness of the complaint.

I am publishing my continuing findings and involving the relevant authorities.

Kind regards,

Katharine Molloy [Virgin]