Why Online Taxis Have Increased in Price: Yandex Go Explains the Reasons

For some time now, companies providing online taxi services in Armenia have raised their service rates. One of the reasons is that a large number of tourists have arrived in Armenia this year, who are using online taxi services, particularly the Yandex Go app. This was reported to NEWS.am by the Yandex Go service.

According to the service, “As a result, the demand for taxis is currently much higher than the supply. Additionally, the city always has a lot of traffic congestion, which makes it occasionally difficult to find an available car nearby. To balance supply and demand, the system automatically calculates a surcharge for rides. At that time, it is beneficial for drivers to head to areas with many passengers but few cars, and only those customers who need to get somewhere quickly will order a car; other customers prefer to wait. Thanks to the surcharge, the number of available cars, or supply, increases, while demand decreases, and that is when supply and demand reach equilibrium.”