The Ride Sharing Firm Uber Uses Dynamic Pricing, Which Results

question 26

True/False

The ride sharing firm Uber uses dynamic pricing, which results in higher fares during busy times and lower fares during less busy times. This is an example of revenue management.

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Definitions:

Money Market Account

A type of savings account that typically offers higher interest rates, with some restrictions on withdrawal.

Cash Surplus

The amount of cash that exceeds the cash needs of a company, indicating a positive financial state with excess liquidity.

Major Expenditure

A significant financial outlay, often relating to the purchase of fixed assets, long-term investments, or other large-scale business expenses.

Lockbox Arrangement

A service provided by banks to process payments quickly by having checks sent to a special post office box.