This study examines customer behaviour toward AI-driven dynamic pricing in Indian ride-hailing services, with a focus on customer perceptions of price fairness. The research further investigates the mediating role of perceived price fairness and customer satisfaction in shaping customer loyalty. A quantitative research design was adopted, and primary data were collected from 150 respondents using a structured questionnaire and analysed through “Just Another Method of a Viable Interface” (JAMOVI) statistical software. Statistical techniques, including correlation, regression, mediation, and group comparison analyses, were employed to test the hypotheses. The findings reveal that AI-driven surge pricing has a significant negative impact on perceived price fairness, customer satisfaction, and customer loyalty. In contrast, pricing transparency exerts a significant positive influence on customer perceptions of price fairness. These results highlight that perceived price fairness and customer satisfaction serve as significant mediators in strengthening the relationships among the variables. The study concludes that transparency and fairness in pricing strategies play a crucial role in enhancing customer satisfaction and loyalty within the Indian ride-hailing industry.