The Truth About Dynamic Pricing #shorts

Added: 2026-05-25

[00:00:00]The first time I remember hearing about this type of pricing, and it's only sort of similar, was with Uber where you'd have like, you know, I remember people talking about if you're on an iPhone versus an Android, you'd get different prices. Like that's like a the bare minimum version of this kind of, but then also people started getting used to dynamic pricing with Uber. Like what's different with this?

[00:00:17]So dynamic pricing suggests supply and demand constraints, right? I think uh a parallel would be airlines where we became pretty comfortable with price fluctuations that we could monitor, but weren't necessarily tied to the individual. So if you were getting a last-minute flight, uh it was maybe more expensive, you're booking far further in advance, there were more seats available, right? Now, because of data-driven pricing, there's some evidence that suggests about a thousand different data points are used to calibrate the price of your seat on an airplane. And back to the Uber example, you know, also some evidence that if you're uh using a business credit card, Uber will upcharge you, charge you more.

[00:00:58]Again, inferring your willingness to pay and squeezing more there.

[00:01:02]Where I think there's a difference between the kind of supply and demand type of calibrations, or I'll use the euphemism pricing experiments that we've seen with Uber, is external factors like say it's raining, so there's more demand, and they'll tell you, you know, prices pri- price higher right now, or um Blue Jays just won the World Series, fingers crossed, you know, there's more people looking for rides out there, something like that, versus this ride is going to cost you more vahs because you tend to take this route and we know you're very likely to take this route and you're using a business card.