Ethical Dilemma What would you do? You are an executive at startup ride-sharing service, JustRide (an...

 

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Ethical Dilemma What would you do? You are an executive at startup ride-sharing service, JustRide (an upstart Uber competitor). JustRide automatically calculates Uber's price for any ride-and uses that information to set JustRide's price for the same destination. JustRide has gained market share by offering "the lowest-priced ride in town" (a claim made in all of its advertising)-setting prices 10 percent lower than Uber. While JustRide is gaining market share, it is not yet profitable. In a bid to become profitable, management recently changed its pricing policy. The app identifies which of its customers do not check competitor prices (the app knows which other apps were recently used on a smartphone); those customers are then quoted prices 10 percent higher than Uber. Customers who have recently opened Uber (or another ride-sharing app) receive the lower price quote. Recently, JustRide blew up social media-for the wrong reason. Customers noticed the different price quotes. Some riders would get a quote from JustRide while a companion got one from Uber; they discovered JustRide was priced higher for the same destination. Not exactly keeping their advertising promise. Now #JustLies and #JustHigherPrices are trending on social mediaoften accompanied by photos showing two different prices.11 Is JustRide's pricing policy unethical? Explain your logic. How is this ethical question similar to or different from Uber's "surge pricing"? How should JustRide respond to this immediately? And in the longer term? In your answer, consider possible changes to advertising and pricing and explain your rationale. Ethical Dilemma What would you do? You are an executive at startup ride-sharing service, JustRide (an upstart Uber competitor). JustRide automatically calculates Uber's price for any ride-and uses that information to set JustRide's price for the same destination. JustRide has gained market share by offering "the lowest-priced ride in town" (a claim made in all of its advertising)-setting prices 10 percent lower than Uber. While JustRide is gaining market share, it is not yet profitable. In a bid to become profitable, management recently changed its pricing policy. The app identifies which of its customers do not check competitor prices (the app knows which other apps were recently used on a smartphone); those customers are then quoted prices 10 percent higher than Uber. Customers who have recently opened Uber (or another ride-sharing app) receive the lower price quote. Recently, JustRide blew up social media-for the wrong reason. Customers noticed the different price quotes. Some riders would get a quote from JustRide while a companion got one from Uber; they discovered JustRide was priced higher for the same destination. Not exactly keeping their advertising promise. Now #JustLies and #JustHigherPrices are trending on social mediaoften accompanied by photos showing two different prices.11 Is JustRide's pricing policy unethical? Explain your logic. How is this ethical question similar to or different from Uber's "surge pricing"? How should JustRide respond to this immediately? And in the longer term? In your answer, consider possible changes to advertising and pricing and explain your rationale.