The good and bad of dynamic pricing | TODAYonline

Last week, ride-hailing platform Grab announced that it would partner five taxi companies (SMRT, Premier, Trans-Cab, HDT Singapore Taxi and Prime) to introduce dynamic pricing for taxi rides booked through the app.

This came after the taxi firms informed the Public Transport Council a few weeks ago of their plans to introduce fares that fluctuate with commuter demand.

This unprecedented move copies a somewhat controversial practice common to the “ridesharing” industry, which uses real-time data on commuter demand to assign fares to rides.

ComfortDelGro, the largest taxi operator, with 60 per cent of the market share, has adopted a wait-and-see approach for now, even though the company had previously expressed interest in dynamic fares.

More details on how Grab’s dynamic pricing would work are still forthcoming.

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The good and bad of dynamic pricing | TODAYonline.