Ride-hailing fares are sometimes cheap, sometimes expensive: What does the app base its pricing on?

For the same distance, sometimes it is only a few tens of thousands, but sometimes it skyrockets to one and a half times that. What factors do ride-hailing apps rely on to come up with constantly changing prices?

Fare changes on ride-hailing apps have left many users wondering.

Over the past few years, ride-hailing apps have become increasingly popular with Vietnamese users. However, the constant change in fares still makes many people wonder about the pricing mechanism. To explain, we need to look at the algorithms and data that ride-hailing platforms are using.

When fares change rapidly

Records in major cities show that the same distance, the fare can increase by one and a half to two times in just a few hours. This fluctuation is especially evident during rush hour, when the demand for travel increases sharply while the number of drivers willing to accept trips decreases.

Bad weather like heavy rain or crowded events can also cause prices to escalate rapidly. In just a few minutes, a trip that would normally be a normal one can become significantly more expensive, creating a sense of unpredictability for users.

This phenomenon does not only occur in Vietnam. In many countries where platforms such as Uber or Grab operate, fares also change according to specific times and conditions. This shows that dynamic pricing mechanisms are widely applied globally.

The technology behind volatile fares

Ride-hailing fares do not change randomly, but are based on dynamic pricing algorithms, also known as dynamic pricing . The basic principle is supply and demand: when the number of people booking a ride exceeds the number of available drivers, the price will be automatically adjusted up to balance supply and demand.

In addition to supply and demand, the system also considers a lot of real-time data. The location of drivers and passengers, the density of bookings in the area, traffic conditions, and even the weather are all calculated by the algorithm. For example, if it rains and the number of passengers increases suddenly, while drivers limit their trips, the algorithm will automatically increase the price to ensure that there are still drivers accepting trips.

Major ride-hailing platforms like Uber and Grab use artificial intelligence to forecast demand and adjust fares in real time. Their systems analyze historical data, traffic conditions, weather, and other factors to predict when and where demand will spike, and adjust fares accordingly.

Thanks to these mechanisms, fares always reflect the real market situation, although this can sometimes be unpredictable for users. Understanding how the algorithm works helps users understand why fares sometimes vary, and at the same time, be more proactive in choosing when and where to book a ride to avoid unexpected costs.

Need for transparency in pricing

For users, flexible fares bring both convenience and confusion. Convenient because the person booking the car can access the service even when demand increases, just need to accept the higher price. But at the same time, the constantly changing prices make many people feel unpredictable and sometimes passive about the cost.

According to market researchers and analysts, dynamic pricing is not unreasonable, as it reflects the market rules and helps balance supply and demand. However, the important point is the level of transparency. Users want platforms to explain more clearly the reasons for price increases, instead of just displaying a message that 'prices are higher than usual'.

In fact, in some countries, regulators have required platforms to publicly disclose how they apply dynamic pricing to ensure consumer rights. In Vietnam, this is also a question that many people ask, especially when fares can change suddenly in just a few minutes.

Fluctuating fares are inevitable when platforms apply algorithms and artificial intelligence to accurately reflect market conditions. But if only a notification of 'higher than normal prices' is displayed, users will find it difficult to avoid feeling passive.

Transparency in pricing not only creates trust, but also helps customers be more proactive when choosing when to book a car.

THANH THU

Source: https://tuoitre.vn/gia-cuoc-goi-xe-luc-re-luc-dat-ung-dung-dua-vao-dieu-gi-de-tinh-gia-2025092411155734.htm