Stomper’s idea to ease jams: Should public buses and trains use ‘dynamic pricing’ like taxis and airlines? | Stomp

Ask anybody who uses public transport what they dread the most in a day and many will say peak hour.

It’s not uncommon to see snaking long queues at MRT stations or people spilling out of bus stops as people commute to and from work.

Stomper Riddhiman, an Economics student at Singapore Institute of Management (SIM) believes that dynamic pricing can help minimise peak hour traffic and the morning and evening rush.

Dynamic pricing, also known as surge pricing or time-based pricing, is the practice of pricing items at a level determined by a particular customer’s perceived ability to pay.

This is commonly used by taxi companies and airlines.

Riddhiman believes that the same can and should be applied to public transport.

“Many steps, such as lower fares pre-peak hours, have been implemented to solve issues but peak hour traffic is still huge,” he said.

“Perhaps it is time public transport also uses dynamic pricing strategies, just like our taxis and airlines do.

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Stomper’s idea to ease jams: Should public buses and trains use ‘dynamic pricing’ like taxis and airlines? – Stomp.