Surge Pricing Algorithm

Benefits and Challenges:

Surge pricing algorithms are essential in ride-sharing applications to dynamically adjust fares based on demand and supply conditions. They help in maximizing earnings during peak times and balancing demand with driver availability.

• Benefits:
  • Maximizes earnings during high-demand periods.
  • Encourages more drivers to operate during peak times.
  • Maintains service availability by matching supply with demand.
• Challenges:
  • Ensuring fair pricing without causing user dissatisfaction.
  • Handling abrupt demand spikes and ensuring smooth transitions.
  • Balancing surge multipliers to optimize both driver earnings and user affordability.

Algorithm:

The Surge Pricing algorithm adjusts the fare based on a base fare and a surge multiplier during peak times.

Example Code (C++):

Pricing

Time Complexity:

• calculateFare Operation (calculateFare function):
  • Time Complexity: O(1)

Space Complexity:

• SurgePricing Class:
  • Space Complexity: O(1)