mera safarnama

Surge Pricing in cab aggregation services

2019-12-02T20:35:00.000+05:30

The time is 11:30 PM, your favourite band just ended their jamming session and you just now want to go back to your room, sleeping upon one of the best memories of your life. You open the Uber app and see what you have been fearing in the back of your mind. There is surge pricing with a multiplier of 2.5x.

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The rise in the ‘sharing’ or ‘gig’ economy has led to a shift from the traditional work culture with fixed working hours. One prominent example of this ‘gig economy’ is ride-sharing apps like Uber and Ola. Uber helps in connecting riders with the drivers, while setting fare for the ride based on the distance covered and total time taken to complete the trip. In case of high demand, Uber applies a ‘surge’ pricing to its fare which has been controversial since the introduction of feature.

As per the Uber website, the surge pricing works in 3 steps:

Due to weather conditions, special events or due to rush hour, a higher number of people may request an Uber ride than usual. This will cause a supply-demand imbalance.
To ensure that people who need the ride most, get it, Uber increases the fares.
Riders pay for the ride or wait till the fares revert to regular price.
Capping the maximum surge multiplier (It can be as high as 50x) and communicating it. Preferably, the cap should be 5x.
Reducing the variability of price fluctuation – so that it does not change every 5 minutes
Communicate the benefits of using the Uber service compared to conventional sources of transportation.
Rebrand the surge pricing like a lot of negative connotation has been attached to it. Some alternatives can be convenience pricing, certainty pricing etc

The Surge pricing is calculated by using an algorithm which comes into action when demand outstrips supply in a fixed geographical area. The secret algorithm calculates the surge multiplier, which is then used to calculate the final fare. This multiplier is shown to both driver and rider before the ride is confirmed by the rider.

Since the Uber work on ‘Self-scheduling’ model where drivers have the full freedom to decide when to work. The decision of an Uber driver to drive in Uber is affected by his expectation of earning more and chances of getting rides etc. At the same time rider side demand has high fluctuations which make ‘Surge’ pricing necessary to balance both sides. ‘Surge’ pricing rewards drivers and at the same time efficiently allocates the limited resource, i.e. Uber ride to those who value it most. The absence of such mechanism can lead to an unprecedented level of demand in a rush-hour causing the waiting period to be so high that it limits the user from using the service of Uber. Castillo, Knoepfle & Weyl have argued that the absence of a regulatory mechanism like ‘Surge’ pricing can lead to an over-burdened system. This will lead to drivers being thinly spread throughout the city on a wild goose chase thus adding their pickup time and reducing their earning potential.

But surge pricing has been a contentious issue for the customers. A survey of 20,000 people on LocalCircles found that 64% of the respondents were not happy with the dynamic and surge pricing. The regular price of the same Uber ride acts as a lower reference point which makes ‘Surge’ pricing look unreasonable. Further, due to its very nature, the ‘Surge’ pricing kicks in when the customers are in a big hurry to leave the geographical area. The uncertainty around the timings of ‘Surge’ pricing and value of Surge Multiplier also does not help. There have been instances of ‘Surge Clubs’ being uncovered wherein drivers were coordinating with each other to trigger the ‘Surge’ pricing. They would do so by simultaneously turning their app off and on again. Recently one of the RSS affiliates has asked Road Transport & Highways Minister Nitin Gadkari to fix surge-pricing limits for taxi aggregators under the Motor Vehicle Act 2019.

So, can the Surge pricing be fixed so that all the three stakeholders be happy with it – Riders, Drivers and Uber?

As per Professor Utpal Dholakia of Jones Graduate School of Business, the surge pricing has a significant image problem. He suggests following four actions to improve it,

Uber’s pricing algorithm works for the betterment of both riders and drivers but to gain the mindshare they need to make the ‘surge’ pricing more open and rider-friendly.

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References

How surge pricing works. (2019). Retrieved 19 September 2019, from https://www.uber.com/in/en/drive/partner-app/how-surge-works/
Gérard P. Cachon, Kaitlin M. Daniels, Ruben Lobel (2017) The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity. Manufacturing & Service Operations Management 19(3):368-384. https://doi.org/10.1287/msom.2017.0618
Chen, M., & Sheldon, M. (2015). Dynamic Pricing in a Labor Market: Surge Pricing and Flexible Work on the Uber Platform.
Hall, J., Kendrick, C., & Nosko, C. (2019). The Effects of Uber’s Surge Pricing.
Juan Camilo Castillo, Dan Knoepe, and Glen Weyl. 2017. Surge Pricing Solves the Wild Goose Chase. ACM Transactions on Economics and Computation 1, 1, Article 1 (January 2017), 2 pages. DOI: hp://dx.doi.org/10.1145/3033274.3085098
Zha, L., Yin, Y., & Du, Y. (2017). Surge Pricing and Labor Supply in the Ride-Sourcing Market. Transportation Research Procedia, 23, 2-21. DOI: 10.1016/j.trpro.2017.05.002
Why Do Consumers Hate Uber’s Surge Pricing?. (2019). Retrieved 19 September 2019, from https://kinder.rice.edu/2016/01/27/uberhatesurgepricing/#.Vqkf5_krLct
Uber drivers are reportedly colluding to trigger 'surge' prices because they say the company is not paying them enough. (2019). Retrieved 19 September 2019, from https://www.businessinsider.in/Uber-drivers-are-reportedly-colluding-to-trigger-surge-prices-because-they-say-the-company-is-not-paying-them-enough/articleshow/69790042.cms
Bhattacharya, A. (2019). Indian Ola and Uber riders are fed up of surge pricing and driver cancellations. Retrieved 19 September 2019, from https://qz.com/india/1472888/indians-are-sick-of-ola-ubers-surge-pricing-cancellations/
Stop Ola, Uber, surge pricing, fine them for cancellations: RSS affiliate tells govt. (2019). Retrieved 19 September 2019, from https://www.businesstoday.in/current/economy-politics/stop-ola-uber-surge-pricing-fine-them-for-cancellations-rss-affiliate-tells-govt/story/379774.html
Everyone Hates Uber’s Surge Pricing – Here’s How to Fix It. (2019). Retrieved 19 September 2019, from https://hbr.org/2015/12/everyone-hates-ubers-surge-pricing-heres-how-to-fix-it
Photo by Thought Catalog on Unsplash

Book Review: Private India by Ashwin Sanghi and James Patterson

2014-09-14T15:01:00.001+05:30

With Indian book market filled with 100 rupees novel having the same banal romance stories, it is a teat to read something from a different genre. Thriller is a genre where few Indian authors have forayed. Ashwin Sanghi has been writing thriller and mystery book which are liked by a very large audience in India. It can’t be argued that Ashwin Sanghi is now a very big name in the list of Indian authors and his books are always a treat to a person. In his latest book ‘PRIVATE INDIA’ he has partnered with world renowned thriller writer James Patterson. And the result, It is awesome. The book is a page turner which reminds of Bollywood movies when you are reading it.

The novel has a tagline ‘It’s the season for murder in Mumbai’ and when one reads novel he finds it true. The novel has a very good cover.

The novel is almost 450 pages long with a lots of chapter and something happens in every chapter. The story is fast paced and has everything from thugee cult to politicians , bollywood, everything. The novel has a very vivid description of the life of Mumbai. So even when one of the co-author is not Indian the book is very Indian and in fact shows a very true picture of the current Indian society. The language is simple and the book material quality is also fine.

The novel is about a detective agency ‘PRIVATE INDIA’ which is a part of a global detective agency ‘Private’ headed by Jack Morgan. But since it is Private India, we have our own hero Santosh Wagh who being an alcoholic, troubled by his own past is trying his best to solve the mystery related to series of murder happening in Mumbai. Santosh Wagh was earlier a member of the police force but was later recruited by Jack Morgan to work in ‘PRIVATE’. The mystery created around private is also very good. Its office is hidden and the agency is not advertised in public. Only a person is recommended by a previous client. In his adventures he is aided by tech expert, Hari, medical expert Mubeen and Nisha.

The novel starts with a prologue about 2006 attacks. In the first chapter a Thai doctor is found killed in her hotel apartment. But the interesting thing is the way in which her dead body is found. Soon, more and more bodies start to be discovered the whole truce of finding the killer falls on the shoulder of the protagonist. A very shocking revelation is made when one reads further. A member of Private India also become a victim in the due course.

Overall, the book is very good. And one can expect more sequels to come in the Private India series in the future. There is also a chance of prequel with Santosh wagh’s disturbed history as central plot. My only advice to anyone thinking of reading this book is to complete all task before starting it. Because once you start it, it is very hard to pause it.

This review is a part of the biggest Book Review Program for Indian Bloggers. Participate now to get free books!

पर गलती हमारी नहीं सिर्फ.....

2013-12-17T22:24:00.000+05:30

कभी बेफिक्री का दौर था , अब तो रातों भी तन्हाई है ,
उन्हें हीं ज़माने का डर है , या हम में ही कोई बुराई है।

पर गलती हमारी नहीं सिर्फ , वोही आये थे इन गलियों में हँसते,
इश्क इतना भी नहीं आसान , काश वोही पहले हमें कह देते।

मृगतृष्णा

2013-12-15T12:28:00.000+05:30

मृगतृष्णा ही जीवन है,

मृगतृष्णा ही गति है.

यूँ तो ज़िंदगी की सारी बातें ही,

झूटी है.

तुम क्यो करते हो वक़्त बर्बाद ,

चीज़ो को,

सच और झूट साबित करने मे.

मृग की प्यास तो वैसे भी कभी,

नही बुझेगी.

लेकिन जीवन का आधार ही,

गति है.

चाहे हो वो पानी के लिए,

हो या,

पानी के आभास के लिए हो.

तुम भी तो कई धोखो मे,

रहते हो.

तो क्यो अपने सपनो को,

मृगतृष्णा का नाम देते हो.

तुम भी उन रेत पे चमकती बूँदो के लिए,

भागो.

अपने लिए ना सही तो,

मृग के लिए ही सही.

How to make the most out of you in 2014?

2013-12-10T17:36:00.000+05:30

"What you get by achieving your goals is not as important as what you become by achieving your goals." - Johann Von Goethe

So, 2013 is going to end soon and yet another new year celebration. and day after day and lo a whole year is passed. Seems familiar huh.

Being obsessive about self-help and motivational books ( and a big fan of Robin Sharma), it is like a ritual for me to make resolutions every year. But again who don't :)

The problem is that with time these resolution get far from our sight day by day and by the end of February, we cant even remember what we had sought from ourselves.

So, here are my suggestions to me and everyone who doesn't want this annual happening to be a reality again in 2014:

1. Make realistic resolution
The problem with having a hard goal is that it requires more determination, stronger will and greater focus. Why take the hard path? So, if you challenge yourself to read 60 novels within a year. Certainly you will fail. Because, 60 that is a big number. But if you remodel your resolution to reading 5 novels every month that seems a bit realistic.

2. Don't force yourself
What goes wrong in case of most of people is that they think with year they too have changed. No Sir, sorry but this is not so. So if you want to go on dieting. Don't halve your diet on January 1. The change should be gradual.

3.Have a record of your resolution
Make a journal and fill out every day, whether you are progressing or just fooling yourself. Another benefit of journal is that you have to confront your resolution everyday, a great reminder. But again the problem is the duty to fill journal daily, which if not done daily will server no purpose.

4.Announce your resolutions publicly
Once you announce your resolution publicly, your friends and colleagues will leave no chance to remind you, every time you break your resolution.

5.Give yourself reward
So you completed January without breaking any resolutions, you deserve a reward, not from me but from yourself :)

6. And finally to err is human....
So you were unable to follow the plan. Don't worry 1st July is as auspicious as 1st January to have a resolution.

Make sure to let me know what are you planning for the coming year in the comments.

नये तरीके के सवाल

2013-07-27T13:24:00.000+05:30

*due to some problem, the poem was not displaying correctly when typed directly in Hindi. That's why I have to upload it as an image. Have a nice day!!

The Escalator Moment

2013-07-24T17:59:00.000+05:30

"The best things in life are unexpected, because there were no expectations." - Eli Khamarov

So, it goes like this. I went to the local mall this noon for the pizza. And this mall have escalators( every mall have). But, the escalator is not my concern what caught my attention was a couple. The lady seemed to have never used the escalator and was bit apprehensive about it. And her husband was giving all the logic and the strategies to do so. He himself demonstrated those by going down and coming back. I don't know if the lady overcame her fear( OK, I went for pizza and was really hungry ), but the incident gave a lot of fodder for my brain.

Everyone of us being a part of society is expected to follow a certain set of rules. And how we learn these rules. My answer, every moment we spend. Ever since childhood we are told to follow the path that everyone is following get good marks, don't make friends of other religion, get admission in a reputed college, get the branch everyone aspire and then get the job(preferably government so that you won't get kicked out for not working). Then get married , have children and don't forget to have a medical insurance, retirement plan and so on.

And what an escalator means to me. OK, you must have a laugh, but for a person for whom stairs have always been static, this is something new. For a person to whom doing something new is taught as equivalent to taking risk, this is a real task to be performed. It is like telling someone to put his hand in fire. No matter how many times you will explain, nobody will do it, because so called common sense stops him from doing so( a real bad example, I mean putting hand in fire).

This is also true that there is also a limit to taking risk. But at least you can take a risk, if you have such a really supportive husband with you.

And what this escalator moment brings.It makes you realize the chains you have always been carrying with you. It revels you the truth that life is not as monotonous and morbid as you have always known.You must haven't forgot your childhood when someone told you that you can fly if wore a red cape. And you believed it because world was full of possibility back then.And then Pythagoras theorem came into your life, one thing after another and finally you reach a state when boarding a moving stair is a daunting task to perform. Don't you want to feel the childhood moment than start searching for your escalator moments here and there, for they may change your life.And at least you can reach your pizza faster :)

If I had a TIME MACHINE!!!!

2013-07-18T18:37:00.000+05:30

Everyone of us have some issue with our very own past. Some of these issues may have a more far reaching effects on our future than others. Some of them may have totally changed the course of your life.

So now and then, when I am roaming in my fantasy land meeting and greeting new ideas here and there. There is one idea that intrigues me, what if I could change my past??

Now, those of you who have seen the movie 'The Butterfly Effect' may not find this idea a good one. But let us keep the movie aside and let me ask you again, what if you can remake your past?

Now the problem I see with this idea is our understanding of life. Obviously, all of you would erase the not-so-good parts of your life. But the fact is it is all these bad parts, that has made us more strong and made us realize the importance of good part. And with each and every story I read about any achiever , my belief that not having 'initial advantage' is not that bad, gets stronger every time.

Also, maybe you can erase the past but what about your future. If you are afraid of doing wrong things, life should be really tough for you brother. In fact these mistakes are like the light house that guides you and lets you make good decision in your later life.

So, the answer to my question turned out to be a real lame one, at least from my side. So, if I get a chance to possess a real, working time machine, I would just put it in my room, a real lame answer.

Chapattis and the Revolt of 1857

2013-07-03T15:54:00.000+05:30

Nothing interests me everyone more than a mystery or a conspiracy theory and when you hear a new one it deserves a mention.

The first major revolt against British in India was the revolt of 1857. The revolt started as a mutiny in the cantonment of Meerut. This mutiny soon converted into a revolt when local peasants also joined it and the target widened to include rich zamindars and jotedars who were seen as allies of British.

The rebellion occured as the result of accumulation of a number of factors over time but the final spark was given by a rumor that cartridges used in the enfield rifles were pre-greased with cow and pig fat.

This rumor further strengthened the people's belief in another rumor that British government is hatching a conspiracy to destroy the caste and religion of Hindus and Muslims. And then another theory begin to float that Britishers are mixing bone dust of cows and pigs in the flour.

And then there was a prophecy that British Raj will come to an end on the centenary of Battle of Plassey i.e. 23 June, 1857.

So what about chapatti?

The chapatti movement first came into attention in February 1857. Then reports started pouring from villages of North India and thousands of chapattis were passing from one hand to another. Usually a person would come from the jungle, give watchman a chapatti and would tell him to make 4 or 5 other chapattis and distribute to the next village. And then poor watchman would be running with chapattis in his turban without even knowing why he was doing this Now the interesting fact is that Indians thought this as the work of British ,who themselves were clueless.

Many explanations were considered such as a hidden message of coming revolt inside the chapattis. But the chapattis on inspection were found to be the normal one. There were reports of lotus and goat flesh also distributed with chapattis sometimes.

God knows or that man of Jungle, but till date the purpose of distribution of chapattis is not clear.

5 best movies I have ever seen

2013-07-01T11:49:00.001+05:30

So this is the list of 5 best movies I have ever seen. The list is in alphabetical order and I hope most of you must have seen almost each movie in the list.

1. Fight Club(1999)

Directed by David Fincher and starring Edward Norton and Brad Pitt this movie serves as a metaphor for the conflict between young generation and the value system of advertising. The character of Tyler Durden is the soul of the movie who is anti -materialist and always ready to give you surprises. With a very unusual story and an unexpected twist in climax, this is a must watch movie.

2. Gladaiator(2000)

Directed by Ridley Scott and starring Russell Crowe this is an epic historical drama film. This movie depicts the life of Roman general Maximus Decimus Meridius. This movie is epic in every aspect story, cast ,set everything. The fall and the subsequent rise of Maximus and the struggle he has to face is itself very inspiring. Winners of 5 academy awards and one of the best historic movie I have seen.

3. The Dark Knight(2008)

Directed by Christopher Nolan and starring Christian Bale changed the way people looked upon at superhero movies. Nolan's trilogy is undoubtedly better than all the previous attempt to bring Batman on the screen but the second installment is the best Nolan has achieved in doing so. The movie observes vigilante balancing his life as Batman and Bruce Wayne and his encounter with the maniac

Joker immortalized by Heath Ledger.

4.The Shawshank Redemption(1994)

Directed by Frank Darabont and starring Tim Robbins and Morgan Freeman. I got know about this movie from one of my friend who advised to watch this movie when I am fully ready for it as I may dislike it. The movie received lukewarm response upon its release( I don't know why?). This movie is a screen adaptation of perseverance and determination. With great characters and a great story,must watch.

5.V for Vendetta(2005)

Directed by James McTeigue set in a near future London, Hugo Weaving portrays V, a bold and charismatic freedom fighter attempting to ignite a revolution. The protagonist wears the mask almost throughout the movie that runs at a slow place but introduces you to ideas you would have never pondered upon.

Special thanks to morguefile.com for image and wikipedia.com for content help.