There is always a queue.

Every marketplace claims to be homogeneous and insists it does not differentiate between its demand and supply, but this is not true.

Marketplaces essentially function as a queue management system, balancing demand (users who want something) and supply (those who provide it).

The goal is to organize demand and supply into clear queues. Once structured, the marketplace can dynamically adjust priority based on users’ willingness to pay and suppliers’ willingness to be utilized.

When many users request rides at the same time, their requests form a queue. Typically, matching a user with a driver takes 10 to 30 seconds.

Jumping the Queue: Users can move ahead in the queue by showing a willingness to pay more, which can be done through:

  • Adding a tip
  • Choosing premium or priority services
  • Increasing their bid or fare

Waiting to Save: Some users prefer to save money by waiting longer or booking at off-peak times. By accepting a lower priority, they pay less. Suppliers can choose to accept these users when demand is low or ignore these bids. It is up to them to decide how to maximize earnings per hour. In some cases, as a user you can even negotiate the price down instead of up if there is sufficient competition among suppliers while demand remains low. There are marketplaces where suppliers bid and the users select rather than the other way around. There are ride-hailing companies that even let drivers purchase a small booster that increases their order income by X% for the next Y hours. This is essentially paying to opt into a higher surge or bonus bracket; while it might seem counterintuitive (drivers paying the platform), some drivers use it strategically when they know demand will be high to maximize their earnings.

This principle extends beyond ride-hailing.

Home Services (Urban Company): Users who pay a premium receive faster service allocation. Others can opt for standard pricing or book during low-demand hours for lower rates.

Restaurant Reservations: At peak times, users may pay extra (a cover charge or premium) to secure prime time slots. Conversely, restaurants offer discounts during off-peak hours to attract customers when demand is low.

Summary: Marketplace efficiency relies on a dynamic queue system—where a user’s position is determined by how much they’re willing to pay and how long they’re willing to wait. The same applies to suppliers. This is a way to maximize revenue and optimize utilization.