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maria [59]
3 years ago
9

Uber uses a pricing strategy based on real-time market conditions. It charges less in periods of low demand and more during peri

ods of high demand. Sometimes these prices double or triple during periods of high demand. Uber argues that these higher prices motivate more drivers to pick up passengers, thus increasing the supply of drivers needed to handle the additional demand. This demand-based pricing strategy is an example of:
Social Studies
1 answer:
defon3 years ago
3 0

Answer:This demand-based pricing strategy is an example of:DYNAMIC PRICING

Explanation:

dynamic pricing is a pricing strategy where by prices of product are adjusted every now an then to accommodate th changes in demand and supply response. Uber charges less when there is low demand to make sure that they get customers but they double or triple their prices when there is high demand because customers are in surplus.

Here are a few benefits of dynamic pricing

- one has major control on their pricing strategy

- it is flexible without interfering with the brand

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