Cab operators cash in on commuters’ misery | The Tribune India

To add to the misery of office-goers, ‘surge’ on taxi aggregators such as Ola and Uber had risen exponentially by a multiple of 3. For a distance of about 10 km, the cabs were charging an exorbitant rate of Rs 350-Rs 370 for the low-cost UberGo and Ola Mini categories in the morning. The fares had normalised by afternoon.

When contacted on the issue of ‘surge pricing’, an official from Uber said: “Upfront fares are calculated using an algorithm that takes into consideration the expected time and distance of the trip, local traffic patterns, demand and supply at a given location. We are able to use past data to estimate the likely cost of the trip and can present that price to a rider before they request for a ride. When dynamic pricing kicks in due to high demand, it incentivises driver partners to get their cars out on the roads to address the demand. In the process, we are able to not just predict demand and supply but also bring down the wait times for riders.”

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Cab operators cash in on commuters’ misery.