Prices or fares of taxis surge when demand exceeds supply — if the number of people requesting for cabs is more than the number of cabs available. The base fare fixed by the aggregators is hiked depending on the demand

HOW DOES IT WORK

Cab aggregators create algorithms that calculate the number of requests at any given time and equate it with the number of cabs available. The process and fares are dynamic. The higher the demand, the higher the surge, at times it is two or four times the base fare