Dynamic pricing: Taxi data must be more transparent | TODAYonline

For commuters, dynamic taxi pricing is a mixed blessing: A greater chance of getting a taxi during rush hour but at a higher fare (Surge pricing: Taxis should also offer competitive fares; March 20).

The taxi companies think this is a way to match demand with supply and to incentivise their drivers.

So far, no one has addressed the weakness of dynamic pricing, which should be applied akin to a clearing house concept, where buyers and sellers are fully aware of real-time demand and supply and the prevailing price.

In our taxi industry context, the companies know the demand situation through their data analytics. Commuters do not know what the supply situation is, however, as the only information they have is the price offered for the ride.

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Dynamic pricing: Taxi data must be more transparent | TODAYonline.