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Pricing strategy of cab aggregators in India

Author

Listed:
  • C. Anirvinna

    (Manipal University Jaipur (MUJ))

  • Arun Kumar Deshmukh

    (Jaypee Institute of Information Technology (JIIT))

Abstract

Cab aggregators are making rapid waves across India and the world. Ola and Uber have seized the opportunity with both the hands through startup and stand up India campaign to tap the potential of the Indian market. The article critically evaluates the pricing strategy employed by and Ola and Uber in India, from an economic perspective. It underlines surge pricing as a strategic business tool vis-à-vis revenue management model and analyses the reasons behind it, including challenges to its application from a legal and a consumer standpoint. It also dwells on the alternative mechanisms such as ‘concealed’ surge pricing, and the effect of such selective pricing on actual demand and supply of cabs on the road and driver incentives. Finally, it prescribes policy solutions, and outlines future questions which can be derived from this study.

Suggested Citation

  • C. Anirvinna & Arun Kumar Deshmukh, 2020. "Pricing strategy of cab aggregators in India," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(4), pages 248-254, August.
    • Handle: RePEc:pal:jorapm:v:19:y:2020:i:4:d:10.1057_s41272-019-00195-5
    DOI: 10.1057/s41272-019-00195-5
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