Surge Pricing in cab aggregation services
The time is 11:30 PM, your favourite band just ended their jamming session and you just now want to go back to your room, sleeping upon one of the best memories of your life. You open the Uber app and see what you have been fearing in the back of your mind. There is surge pricing with a multiplier of 2.5x. ### The rise in the ‘sharing’ or ‘gig’ economy has led to a shift from the traditional work culture with fixed working hours. One prominent example of this ‘gig economy’ is ride-sharing apps like Uber and Ola. Uber helps in connecting riders with the drivers, while setting fare for the ride based on the distance covered and total time taken to complete the trip. In case of high demand, Uber applies a ‘surge’ pricing to its fare which has been controversial since the introduction of feature. As per the Uber website, the surge pricing works in 3 steps: Due to weather conditions, special events or due to rush hour, a higher number of people may request an Uber ride than usual.