TaxiDex

Glossary

What is surge pricing?

Surge pricing multiplies the normal fare when many people want a ride and few cars are free, to pull more drivers onto the road and ration demand. Ride-hailing apps set it automatically; a taxi or private hire operator can run a capped, rule-based version, but licensed taxis on a council tariff cannot surge above it.

Last updated 1 official sourceTaxiDex team

How does surge work on the big apps?

The app compares open requests with free drivers in an area and applies a multiplier shown to the rider before booking. The multiplier falls as drivers arrive or demand drops.

Can a taxi operator use surge?

For pre-booked private hire, prices are agreed with the customer, so an operator can charge more at peak times if it says so before the booking. A metered hackney carriage is bound by the council's table of fares, which sets the maximum.[1]

How do you run surge without losing customers?

Cap the multiplier, show the higher price before the customer confirms, exclude account and contract customers, and limit it to real shortages such as New Year's Eve. TaxiDex raises prices within limits you set (surge pricing); test the numbers in the surge pricing simulator.

Frequently asked questions

Is surge pricing legal in the UK?

For private hire the fare is agreed in advance, so a clearly shown peak price can be charged. Hackney carriages cannot exceed the council tariff on metered journeys.

Does surge help a small fleet?

Rarely as a growth tool: most small operators win on reliability and fixed prices. A modest, capped peak charge can still cover night-time driver pay.

Sources

Fees and rules change. Each source is the official page we read, with the date we read it; check it before you apply or pay.

  1. [1] legislation.gov.uk: Local Government (Miscellaneous Provisions) Act 1976, section 65 (fixing of fares for hackney carriages) (read 8 Nov 2026)

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