Case Study on Ride-Hailing App — Part 2

Photo by Paul Hanaoka on Unsplash

- Reduce the demand supply mismatch

- Compensate drivers by providing them better revenue

- Provide service to people who intend to pay higher for it

Weather conditions — Due to harsh weather conditions like heavy rain, thunderstorms there are more road closures leading to traffic jams. The usual trip might take a longer duration. This affects the supply of drivers thus having an effect on fare.

Festivals/Big events — If there are major events like cricket matches or famous personality visits or even during festivals a large number of people request rides. Due to this, there is a sudden demand-supply mismatch.

Traffic/Peak time of the day — After work hours are usually peak hours since a lot of people are returning home from work which also affects the traffic conditions in that area. For example — In normal days before Covid, the road near tech parks was usually jammed around 5–6 pm when most of the people are leaving for their home from work.

Competitive Pricing — Competition plays a huge role in determining the prices especially in a fragmented market like India with two main competitors — Uber and Ola and a few emerging players like Rapido or Jugnoo.

- We can use a machine learning model to analyze multiple variables, such as historical data, traffic conditions, holidays and weather, to ultimately determine the demand for the drivers. Leveraging this information, we can then generate the optimal price at different times of the day, week and month.

- We can use a deep learning model like Long short-term memory (LSTM) to predict unprecedented events or the future stances of an event as LSTM allows information to persist.[1]

- We need to set thresholds for the difference between supply and demand when surge needs to be enabled or disabled. For example — if demand > supply by 10 cars then we can apply surge pricing and vice versa. We need to experiment with different limits to come up with the optimal number.

--

--

--

IIM Bangalore | Writing about Machine Learning & Quantitative finance.

Love podcasts or audiobooks? Learn on the go with our new app.

Decoding the Tan and Red Colors on Google Maps

MANUFACTURING PROCESS FLEXIBILITY: An inestimable strategic decision in the new world industry

Engineering Metrics And Dashboards Part 1

GA COVID-19 Report September 16, 2021

Performing Analysis of Meteorological Data

Which technologies and roles could earn more?

The weather may be getting cooler, but we’re just heating up.

Data visualization: How is the situation on forest fires in the US and Brazil

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Priyanka Dalmia

Priyanka Dalmia

IIM Bangalore | Writing about Machine Learning & Quantitative finance.

More from Medium

Innovate for Africa — A beautiful Learning Experience

Time, Companies & Jobs. My Story on What to look for to prevent a bitter experience.

When will banks not need banking apps? (Part 2)