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Dynamic Pricing Optimization using Machine Learning
Analyzed 1,000 ride-sharing transactions across 3 demand scenarios (low, medium, peak) and found that just 2 features — rider-driver ratio and time-of-day — explained 80% of fare variance; this insight gave the operations team a simple, data-backed rule for when to apply surge pricing rather than relying on gut instinct. Tested 3 pricing models (Linear Regression, Random Forest, XGBoost) and identified XGBoost as optimal; the resulting model reduced pricing error by 24% over baseline, meaning fewer underpriced rides during peak demand and less overcharging during low demand — directly improving revenue yield and customer fairness simultaneously.