The Middle East based car hailing app Careem looks to introduce the peak pricing strategy in Pakistan. Peak pricing is a practice of 'temporary increasing the cost of available rides in times of excessive demands.'
In doing so Careem will join rival Uber, which days ago launched the phenomenon of surge pricing in Lahore. This was done to overcome the lack of drivers available in peak hours or in harsh weather conditions, reported TechJuice.
However, the move was not appreciated by the customers, as the policy was viewed as a form of company exploitation of its customers, by charging high in hour of need, reported.
“In order to ensure that we can provide you with the best availability of cars at all times, Peak was introduced. A Peak factor will temporarily increase the cost of available rides during times of excessive demand, which helps increase the supply of available cars in high-demand times and locations.”
“Any additional costs during Peak will be fully paid to the Captain to encourage them to be available during peak times,” reads Careem international website.
Taking the website statement into account one can assume that Careem will be paying the additional costs to Pakistani drivers who are available during Peak times, which can work as an extra incentive for the drivers.
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