Surge Pricing

Noun · Startup & VC

Definitions

  1. Dynamic pricing that increases prices temporarily when demand outstrips available supply. Marketplace and delivery companies use surge pricing to rebalance the market and attract more supply, though customers often dislike it.

    In plain English: Temporarily raising prices when demand is high and supply is limited.

    Example: "Surge pricing brought more drivers online, but it also triggered customer complaints on social media."

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