What is surge pricing in ride-sharing?
Surge pricing is a pricing strategy used by ride-sharing services where fares increase during high demand periods.
Why do companies implement surge pricing?
Companies implement surge pricing to balance supply and demand, ensuring that enough drivers are available during peak times.
How does surge pricing affect riders?
Surge pricing can lead to higher fares for riders, which may discourage some from using the service during peak times.
Are there any alternatives to surge pricing?
Alternatives include flat-rate pricing, subscription models, or incentivizing drivers to work during off-peak hours.
Is surge pricing fair to customers?
The fairness of surge pricing is debated; some argue it reflects real-time demand, while others see it as exploitative.
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