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Oct 2, 2022 · Surge pricing has been used to coordinate supply and demand in the ride-sharing industry, but its causal effects on driver behavior remain unclear. This motivates us to examine how surge pricing causally affects driver earnings and labor supply by leveraging a unique quasi-experiment, in which a leading ride-sharing company in China introduced surge pricing in two cities at different times.
Aug 9, 2021 · Abstract. Ride-hailing marketplaces like Uber and Lyft use dynamic pricing, often called surge, to balance the supply of available drivers with the demand for rides. We study driver-side payment mechanisms for such marketplaces, presenting the theoretical foundation that has informed the design of Uber’s new additive driver surge mechanism.
- Nikhil Garg, Hamid Nazerzadeh, Hamid Nazerzadeh
- 2021
Jan 5, 2016 · The key, at least from Uber’s perspective, is that surge pricing allows Uber to offer incentives for drivers to drive when Uber wants them to. So, surge pricing is a good mechanism for ...
Sep 1, 2015 · Abstract. A sold-out concert in Madison Square Garden provides an illustration of the power of surge to equilibrate supply of and demand for rides with Uber. Surge pricing draws more drivers into the area after the concert ends, and causes riders to sort into requesting a ride (or closing the app without requesting a ride) according to their ...
Oct 8, 2020 · Abstract. We consider the pricing problem faced by a revenue-maximizing platform matching price-sensitive customers to flexible supply units within a geographic area. This can be interpreted as the problem faced in the short term by a ride-hailing platform. We propose a two-dimensional framework in which a platform selects prices for different ...
- Omar Besbes, Francisco Castro, Ilan Lobel
- 2021
Jan 1, 2021 · We provide a review of matching and DP techniques in ride‐hailing, and show that they are critical for providing an experience with low waiting time for both riders and drivers.
People also ask
Does surge pricing affect driver behavior?
Why does Uber use surge pricing?
Does surge pricing increase drivers' weekly revenue?
What is surge pricing & how does it work?
Is surge pricing beneficial to consumers?
Does surge pricing entice more part-time drivers to flood the market?
Apr 13, 2023 · Customer complaints decrease a driver’s future income. About 23 percent of a driver’s immediate income boost from surge pricing is offset by the future income loss from rider complaints. Capping surge prices can reduce surge-induced complaints, which increases overall app usage and limits the negative impact on drivers.
