Price Wars: iPhone vs Android

Have consumers ever noticed or realized that on Zepto, products are at a higher price for an iPhone user than an Android user or that the cabs on Uber and Ola are more expensive when booked by an iPhone user? In this digitalized era, all of this is done by coding. This coding method, algorithmic pricing, has become a common practice across various industries.

What Is Algorithmic Pricing?

Algorithmic pricing is a dynamic, automated method for determining product prices with the help of data analysis and machine learning algorithms. The prices of goods and services are often changed using vast amounts of data relative to market demand, competitor pricing, and consumer behaviours so that companies can optimize their revenue strategies with prices that align with the current market condition, hence sustaining competition.