Dynamic Pricing

Definition

Pricing that changes based on demand, time, and other factors, used by rideshare and some delivery apps.

Related Terms

Surge Pricing

Dynamic pricing during high-demand periods that increases fares for rideshare passengers and pay for drivers.

Peak Pay

Additional pay offered by delivery apps during high-demand periods to incentivize drivers to work.

FAQs

How does it work?

Algorithm adjusts prices based on supply and demand.

Good for drivers?

Yes, you earn more during high-demand periods.

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Last updated: January 18, 2026

Reviewed by GigFinance Team, Gig Economy & Finance Experts

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