Passengers will find it difficult to take a taxi when the response rate of a city continues to decline at a certain time or all day, and the supply and demand are obviously unbalanced. Every 10 taxi may be called less than three times, as happened in Shenyang recently. If the price is raised properly, the demand for price-sensitive products will be reduced, and at the same time, more drivers will be encouraged to drive and take orders in hot spots to balance supply and demand. At present, most cities are in a state of more passengers and fewer drivers.
On the contrary, if a city's supply exceeds demand for a long time at a certain time or all day, and drivers take fewer orders for a long time, they can't get reasonable income. At this time, the price of the online car is appropriately lowered, which not only allows passengers to call the car at a cheaper travel price, but also ensures the driver's income. For example, in the first half of this year, the express train in Jiyuan, Henan Province, and the special train in Hefei, Anhui Province and Urumqi, Xinjiang, had a long-term oversupply in some time periods, so the starting price, mileage fee and duration of the corresponding time periods were all lowered.
The relationship between supply and demand fundamentally determines the price fluctuation. Only when the demand for travel is growing rapidly, the demand of cities is in short supply, and the transportation capacity is insufficient, it is necessary to raise the price. However, when supply and demand are balanced, random price increases will definitely reduce passengers' taxi demand and directly affect the income of drivers and platforms, which also determines that Didi will not raise prices at will. Due to the continuous development of economic level and urbanization process, the travel demand and drivers' labor and living costs in most cities are increasing, so everyone will feel that the price has gone up more and fallen less.