The dynamic pricing conundrum | The New Paper

Four taxi companies are expected to roll out a “dynamic pricing” option later this week, a pricing mechanism used by private-hire services Uber and GrabCar.

ComfortDelGro said it will hold off dynamic pricing for the moment and Prime has not given a firm indication of whether it will introduce such a system.

While flat charges are a welcome alternative to the complicated taxi fare structure, they are also less transparent.

As it is now, some cabbies are only appearing after midnight to earn the extra 50 per cent late-night levy.

Ride-hailing apps use algorithms to calculate fares and surge pricing which keep commuters in the dark about the premium they are actually forking out during a period of high demand.

The suggested taxi dynamic pricing system will have cab companies quoting a single flat fare when commuters book their taxis through a new function in the Grab app, called JustGrab.

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The dynamic pricing conundrum, Latest Views News – The New Paper.