Economies of Scale

Uber's pricing mechanism became hot news during the recent hostage crisis in Sydney, Australia. According to reports the rates were increased to highest when demand of taxi increased among frightened citizen of Sydney. This pricing model is common worldwide.




In 1999, when internet was a big deal, Coca Cola experimented with a smart vending machine that would automatically raise cola prices in the summer heat. The new machine was to be fitted with a sensor to gauge the outside temperature as well as a chip that would connect to the internet.