dynamic pricing |

Fixed pricing models only apply demand and supply factors at a certain level to calculate prices, causing prices to be high and volatile at times, especially during peak hours and holiday seasons.
Wide variation in prices between neighboring areas leads to a mass of drivers dispatching into areas with high prices, leaving customers in the lower-price areas with no service.
High volatility in prices and unbalanced supplies of service result in a loss of customer satisfaction and loyalty to the system.
To address this problem, an algorithm is introduced to not only compute competitive service prices but also reduce price variations.
To demonstrate the benefits of the proposed model over fixed pricing models, experimental assessments are conducted based on authentic data of a major ride-sharing platform in Vietnam.

dynamic pricing