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"Last saturday night in NYC was a bit of a moment for Uber and their surge pricing mechanic. Most people were seeing 3x-5x in manhattan for most of the night and there were reports of 10x for some people. There was a snowstorm, people were out at holiday parties, and there was more demand for rides than there were cabs. So in some sense the market worked and rides went to those who were willing to pay the most for them. The next day Mo Koyman tweeted about it and one of the  larger twitter conversations I have seen developed . . @uber  is loved by customers, but charging 4x - 8x in inclement weather is unacceptable. is that one day's margin > customer experience?!? ? Mo Koyfman (@mokoyfman)  December 15, 2013 Today my partner Albert  wrote a post about it  and noted a couple issues with the way surge pricing works and the way the urban transportation market works. He also points out that the best way to get around NYC is the subway, which is how I got home from a holiday party last night around 10:30pm. I love the subway a lot more than I love any other form of transportation in NYC. However, this is an interesting discussion because it points out that as markets/networks (Uber) replace hierarchies/bureaucracies (the TLC), we are running into issues that are going to have to work themselves out over time. As Albert points out in his post, the current yellow cab fare model is even more flawed than Uber's surge pricing model. Ideally we will see more supply emerge and a real marketplace structure emerge in urban ride sharing. Then we may get reasonably priced rides on a wintery and festive night in NYC. And then, of course, there is always the subway."

Content from Fred Wilson's blog, avc.com, used under Creative Commons License. Fred Wilson is a VC and principal of Union Square Ventures. Originally posted on December 20, 2013.

Markets and Clearing Prices (a post by @FredWilson)

Given the endless time we all spend with our noses in our phones, it may not be too surprising to hear that the smartphone has taken over the tech world. But the smartphone’s dominance is so complete, says a16z’s Benedict Evans, that it’s useful to think of it as the sun, the object around which everything else in the (technology) planetary system revolves. 

Technology meets astronomy, plus Android’s Stagefright bug, and why three German carmakers are getting into the software business in this segment of the a16z Podcast.

a16z Podcast: A Copernican Update ... In Tech, the Smartphone is the Center

I am a VC. I have been since 1986. I help people start and build technology companies. I do it in NYC, which isn't the easiest place to build technology companies, but it's getting better.

I love my work.  I am the Managing Partner of two venture capital firms, Flatiron Partners and Union Square Ventures.

I also am a husband and a father of 3 kids. I do that in NYC too. And it isn't the easiest place to raise a family either. But it's getting better too. I love my family more than my work.

I also love music, art, yoga, biking, skiing, and golf. That's a lot of interests for a guy who works 70 hours a week and loves his family. But I manage to make it work. 

Markets and Clearing Prices (a post by @FredWilson)

Fred Wilson's A VC