Mini Case Study: $$Taxi$!$ or is it $$Ride$-$Share!$?$

Are taxi fares set using cost$-$based or market pricing methods, or both? Explain your answer and illustrate it with examples from the case study.

What is the theory behind $$surge pricing$?$ How does it work in practice and what are the arguments for and against it$?$

Is Uber following a penetration pricing strategy or could their pricing be said to be predatory? What other pricing strategies and tactics are employed in the taxi industry? Assess their effectiveness in London and$/$or in your hometown.