  Over the past decade, ride-sharing services have become increasingly
important, with U.S. market leaders such as Uber and Lyft expanding to over 900
cities worldwide and facilitating billions of rides annually. This rise
reflects their ability to meet users' convenience, efficiency, and
affordability needs. However, in busy areas and surge zones, the benefits of
these platforms can diminish, prompting riders to relocate to cheaper, more
convenient locations or seek alternative transportation.
  While much research has focused on the strategic behavior of drivers, the
strategic actions of riders, especially when it comes to riders walking outside
of surge zones, remain under-explored. This paper examines the impact of
rider-side strategic behavior on surge dynamics. We investigate how riders'
actions influence market dynamics, including supply, demand, and pricing. We
show significant impacts, such as spillover effects where demand increases in
areas adjacent to surge zones and prices surge in nearby areas. Our theoretical
insights and experimental results highlight that rider strategic behavior helps
redistribute demand, reduce surge prices, and clear demand in a more balanced
way across zones.
