🚖 Uber - Surge Pricing Service

Read the uber project microservices overview beforehand to understand how this fits in the architecture of the entire microservice.

🎯 Key Objectives

• Your API should run on the port 5001.
• Build an API that calculates and returns a surge multiplier based on active ride requests and available drivers.
• Ensure real-time pricing updates by dynamically adjusting surge values.
• Integrate with other microservices (Ride Request, Driver Management) to fetch required data.
• Implement a logic-driven pricing model to ensure fairness and prevent price abuse.

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📍 Required API Endpoints

Your Surge Pricing Service API should expose the following endpoints:

1️⃣ Get Surge Multiplier for a Location

• Endpoint: GET /surge?lat={lat}&lng={lng}
• Description: Returns the surge multiplier for the given location.
• Request Parameters:
  • lat (float) → Latitude of the location.
  • lng (float) → Longitude of the location.
• Response:

  {
    "location": { "lat": 40.7128, "lng": -74.006 },
    "activeRequests": 15,
    "availableDrivers": 5,
    "surge_multiplier": 2.0
  }

• Logic:
  • If available drivers = 0, return maximum surge multiplier (e.g., 2.5).
  • If demand/supply ratio ≤ 1, return 1.0 (no surge).
  • If demand/supply ratio > 1.5, increase the multiplier gradually (e.g., 1.2, 1.5, 2.0).
  • Ensure the multiplier never exceeds a maximum cap to prevent extreme pricing.

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⚙️ How the Surge Pricing Logic Works

1. Tracking Demand & Supply:

   • The system monitors active ride requests and available drivers in real-time.
   • Data is stored per geographical location (lat, lng).

2. Calculating Surge Multiplier:

   • Demand-Supply Ratio = active ride requests / available drivers
   • If supply is low, increase the multiplier.
   • If supply is high, keep the multiplier at 1.0 (no surge).

3. Integration with Ride Request Service:

   • When a user requests a ride, the Ride Request Service queries this service.
   • The multiplier is applied to the fare calculation to adjust pricing.

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📌 Expected Behavior

Scenario	Expected Surge Multiplier
Low demand, many drivers	1.0 (No surge)
Moderate demand, balanced drivers	1.2 - 1.5 (Mild surge)
High demand, few drivers	2.0 (Strong surge)
No available drivers	2.5 (Max Surge)

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🚀 Deliverables

• A fully functional Surge Pricing API with the defined endpoints.
• Proper logic implementation for surge calculations.
• Well-structured error handling and validations.
• Your API should run on the port 5001.

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📌 By completing this project, you will create a real-world, scalable surge pricing engine used in ride-sharing applications like Uber! 🚖💡