Surge pricing

Surge pricing is a strategy used by companies like ride-sharing services to adjust prices based on demand. When many people want a service at the same time—such as during rush hours, bad weather, or special events—the price increases to encourage more drivers to provide the service and to manage demand. Once demand decreases, prices return to normal. This dynamic pricing helps balance supply and demand, ensuring that customers can get quick access while incentivizing others to meet increased needs, ultimately aiming for efficient service delivery during high-demand periods.