Design a ride-hailing pricing engine with fairness

Q: Design a ride-hailing pricing engine with fairness

This is a System Design interview question from Amazon for Software Engineer roles. View the full question and solution on PracHub.

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Question

System Design: Ride-Hailing Pricing Service

Design a ride-hailing pricing service that maximizes company revenue while ensuring fairness for riders and drivers.

Requirements

Pricing Strategy Framework
- Define components: base fare, time, distance, surge/dynamic pricing from supply–demand, discounts/promotions, fees/surcharges.
Candidate Routes and Selection
- For each ride request, return multiple candidate routes (e.g., fastest, cheapest, toll-free). Compute a price for the selected route.
Pooled Rides
- Support pooled rides; specify how prices are split among pooled riders and how drivers are compensated.
APIs, Data Models, and Core Classes
- Expose APIs, data models, and core classes; provide pseudocode for price computation.
Fairness Metrics and Constraints
- State fairness metrics and constraints (price caps, surge limits, driver earnings floors) and describe interaction with revenue maximization.
Edge Cases and Reliability
- Handle cancellations, detours, tolls, promos; include rate limiting and idempotency.
Scalability and Extensibility
- Discuss scalability, caching, latency SLOs, and how to add new pricing rules.

Design a ride-hailing pricing engine with fairness

System Design: Ride-Hailing Pricing Service

Requirements

Solution (Locked)

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