Dynamic pricing takes place when several users request a trip in the same area at the same time. Surge is applied for many reasons (during a downpour, sporting events in the city or holidays, etc.). Dynamic pricing helps ensure that riders can always receive a quick and convenient pickup.
Surge is already applied to the upfront fare that you see when requesting a ride Your app always inform you about the surge live in your area by "High demand" notification.
Dynamic pricing is convenient in two ways. Some users are ready to wait for few more minutes or continue with public transport usually do this. As the result, the dynamic pricing decreases. Dynamic pricing also encourages more drivers to get on the road and head to areas of the city where demand for rides is higher than drivers' ability to accommodate all the ride requests happening at any moment. When demand goes down, fares return to normal.
Please note that surge is applied only to base fare and time and distance rates. Surge is not applied to a cancellation fee, road or other surcharges related to a specific trip.