Apr 10, 2018

Dynamic / personalized pricing is coming

For products that you could buy physically, it might take a longer time. For services like transportation, we are close already: Uber is reportedly already applying dynamic pricing - best guessing what you are ready and willing to pay individually, at a certain point in time, for a fare instead of calculating one price that is the same for everyone anytime. I have mixed feelings. On the one hand, this can be a great business tool. It can also be a kind of "socialist" tool to adjust prices. Who said that "one and the same price for everyone" is the most correct system of pricing? Fines for example, for running over a red traffic light, are vastly different for a student, for me, or for a football professional, although we comitted the same "crime". On the other hand, it might be also very dangerous for businesses: If I have the feeling I am getting ripped off... especially because I was a good customer (would buy anyway, so no discounts or special offers for this guy - the opposite, a higher price)... it would kill my loyalty in an instant. Difficult topic, interesting to observe.

Overview in the Guardian:
https://www.theguardian.com/global/2017/nov/20/dynamic-personalised-pricing

Airlines:
http://www.travelweekly.com/Travel-News/Airline-News/Airlines-inching-closer-to-dynamic-pricing

Uber:
https://news.ycombinator.com/item?id=16706164