26
March
2017
|
00:10
Asia/Singapore

The good and bad of dynamic pricing

Mr Hawyee Auyong from the Lee Kuan Yew School of Public Policy at NUS examined the practice of dynamic pricing for taxi rides booked through the Grab app, as well as possible unintended consequences. He noted how surge pricing could result in cabbies shunning passengers on the streets and that if the practice eventually adds to commuter frustration or leaves behind disadvantaged segments of the population, including those unable to use booking apps, there may be public pressure for regulators to step in once again in setting taxi fares or to limit how ‘dynamic’ taxi fares are allowed to be.