Following Uber’s footsteps, it seems that even Careem is introducing increased travel rates during times when demand is high.
With Careem also deciding to introduce high travel fares during peak hours, it seems that both the popular ride-hailing services are bowing to market economics.
Careem Pakistan hasn’t so far updated its user about the Peak Pricing, however, their international website contains the following excerpt for Peak, Careem’s name for surge pricing:
“In order to ensure that we can provide you with the best availability of cars at all times, Peak was introduced. A Peak factor will temporarily increase the cost of available rides during times of excessive demand, which helps increase the supply of available cars in high-demand times and locations.
Any additional costs during Peak will be fully paid to the Captain to encourage them to be available during peak times.”
Going by this, it can be assumed that Careem will be paying the additional costs to Pakistani drivers who are available during Peak times. This can serve as an incentive for drivers to come out and cater to the demands of customers.