‘Dynamic pricing’ is nothing more than another descriptor of demand and supply pricing. It uses the analogy of flight and hotel accommodation prices increasing in holiday periods due to greater demand. Such is the case of Uber. The more customers demand an Uber, the higher the price will be. Peak prices are charged on New Year’s Eve, in the hour after midnight, when everyone wants to get home. Uber recommends that one travels outside of this time period.
Uber explains that the higher fees will attract more of its drivers to work in peak demand periods, becoming a win-win for all. When ‘dynamic pricing‘ is active, the Uber app will notify the user, and encore the price increase. One can receive Uber alerts when the ‘dynamic pricing’ period has ended. Uber adds that they have an algorithm which automatically triggers ‘dynamic pricing‘, to help stabilize the Uber supply and demand.
Uber suggests that one share a ride, which allows one to split the fee with another Uber user. Weird is a final note, almost a warning, that Uber drivers rate users too, encouraging ‘mutual respect between riders and drivers‘.
Source: Media Release from Uber.
Chris von Ulmenstein, WhaleTales Blog: www.whalecottage.com/blog Tel 082 55 11 323 Twitter:@WhaleCottage Facebook: click here