diff --git a/backend/pricing-engine/migrations/002_fix_surge_unique_key.sql b/backend/pricing-engine/migrations/002_fix_surge_unique_key.sql
new file mode 100644
index 00000000..5a3a4b7c
--- /dev/null
+++ b/backend/pricing-engine/migrations/002_fix_surge_unique_key.sql
@@ -0,0 +1,17 @@
+-- Migration 002: Fix surge insights unique key
+-- Problem: The old unique key included peak_start_hour and peak_end_hour,
+-- which meant a new record was inserted every time the peak window shifted,
+-- instead of updating the existing one.
+-- Fix: The unique key now only covers (competitor_name, country_code),
+-- so ON DUPLICATE KEY UPDATE always updates the existing row correctly.
+
+-- Step 1: Drop the old unique key that included peak hours
+ALTER TABLE `competitor_surge_insights`
+  DROP INDEX `unique_surge`;
+
+-- Step 2: Add the correct unique key — one row per competitor per country
+ALTER TABLE `competitor_surge_insights`
+  ADD UNIQUE KEY `unique_surge` (`competitor_name`, `country_code`);
+
+-- Verify: show the new index
+-- SHOW INDEX FROM `competitor_surge_insights`;
diff --git a/backend/pricing-engine/src/analysis/clustering.ts b/backend/pricing-engine/src/analysis/clustering.ts
index d264b652..c1c471f4 100644
--- a/backend/pricing-engine/src/analysis/clustering.ts
+++ b/backend/pricing-engine/src/analysis/clustering.ts
@@ -7,9 +7,29 @@ const TIER_LABELS: Array<'economy' | 'standard' | 'premium'> = [
   'premium',
 ];
 
+/**
+ * City center coordinates per country code.
+ * Used by classifyZoneType to measure distance from the urban center.
+ * Add more countries here as new competitors are onboarded.
+ */
+const CITY_CENTERS: Record<string, { lat: number; lng: number }> = {
+  JO: { lat: 31.95, lng: 35.90 },  // Amman, Jordan
+  SY: { lat: 33.51, lng: 36.29 },  // Damascus, Syria
+  IQ: { lat: 33.34, lng: 44.40 },  // Baghdad, Iraq
+  SA: { lat: 24.69, lng: 46.72 },  // Riyadh, Saudi Arabia
+  AE: { lat: 25.20, lng: 55.27 },  // Dubai, UAE
+  EG: { lat: 30.04, lng: 31.24 },  // Cairo, Egypt
+  LB: { lat: 33.89, lng: 35.50 },  // Beirut, Lebanon
+  KW: { lat: 29.37, lng: 47.98 },  // Kuwait City
+};
+
+/** Fallback city center when country code is not mapped yet */
+const DEFAULT_CITY_CENTER = { lat: 31.95, lng: 35.90 }; // Amman
+
 /**
  * Cluster rides into pricing tiers based on price_per_km using K-Means.
  * Returns sorted tiers (economy < standard < premium).
+ * Uses multi-run K-Means++ for stable, deterministic results.
  */
 export function clusterTiers(
   samples: RideSample[],
@@ -70,11 +90,19 @@ export function assignZone(lat: number, lng: number): string {
 }
 
 /**
- * Classify zone type based on distance from city center (Amman: 31.95, 35.90).
+ * Classify zone type based on distance from the city center for a given country.
+ * Falls back to Amman coordinates if countryCode is not in CITY_CENTERS.
+ *
+ * Zone radii (in degrees, ~111km per degree):
+ *   centre   < 0.025° ≈  2.8 km
+ *   mid      < 0.050° ≈  5.6 km
+ *   suburb   < 0.100° ≈ 11.1 km
+ *   outskirts ≥ 0.100°
  */
-export function classifyZoneType(lat: number, lng: number): string {
-  const dlat = lat - 31.95;
-  const dlng = lng - 35.90;
+export function classifyZoneType(lat: number, lng: number, countryCode: string = 'JO'): string {
+  const center = CITY_CENTERS[countryCode] ?? DEFAULT_CITY_CENTER;
+  const dlat = lat - center.lat;
+  const dlng = lng - center.lng;
   const dist = Math.sqrt(dlat * dlat + dlng * dlng);
 
   if (dist < 0.025) return 'centre';
diff --git a/backend/pricing-engine/src/analysis/engine.ts b/backend/pricing-engine/src/analysis/engine.ts
index 066d6d96..65b90273 100644
--- a/backend/pricing-engine/src/analysis/engine.ts
+++ b/backend/pricing-engine/src/analysis/engine.ts
@@ -4,12 +4,19 @@ import { clusterTiers } from './clustering';
 import { analyzeAllTiers } from './regression';
 import { detectSurge, aggregateSurgeHours } from './surge';
 import { analyzeByZone, analyzeByZoneType } from './zone';
+import { median } from 'simple-statistics';
 
 export interface EngineOptions {
   competitorName?: string;
   countryCode?: string;
   cleanOutliers?: boolean;
-  surgeThreshold?: number;
+  /**
+   * Surge threshold as a fraction of the median price (e.g. 0.05 = 5%).
+   * Default: 0.05 (5% of median ride price).
+   * The absolute threshold is computed dynamically per dataset so it scales
+   * correctly across currencies (JOD, SYP, IQD, etc.).
+   */
+  surgeThresholdFraction?: number;
   tierCount?: number;
 }
 
@@ -23,7 +30,7 @@ export async function runAnalysis(
 ): Promise<AnalysisReport> {
   const {
     cleanOutliers = true,
-    surgeThreshold = 0.12,
+    surgeThresholdFraction = 0.05,
     tierCount = 3,
   } = options;
 
@@ -36,21 +43,27 @@ export async function runAnalysis(
   // Step 1: Remove statistical outliers (MAD on PPK)
   const cleanSamples = cleanOutliers ? removeOutliers(samples) : samples;
 
-  // Step 2: Group by route and extract base (non-surge) prices
+  // Step 2: Compute dynamic surge threshold — 5% of median price, clamped to [0.05, 2.0]
+  // This ensures the threshold scales correctly for high-denomination currencies.
+  const allPrices = cleanSamples.map(s => s.price);
+  const medianPrice = median(allPrices);
+  const surgeThreshold = Math.min(Math.max(medianPrice * surgeThresholdFraction, 0.05), 2.0);
+
+  // Step 3: Group by route and extract base (non-surge) prices
   const routeGroups = groupByRoute(cleanSamples);
   const baseSamples = extractBasePrices(routeGroups, surgeThreshold);
 
-  // Step 3: Cluster into pricing tiers by PPK
+  // Step 4: Cluster into pricing tiers by PPK
   const rawTiers = clusterTiers(cleanSamples, tierCount);
 
-  // Step 4: Run regression on each tier
+  // Step 5: Run regression on each tier
   const analyzedTiers = analyzeAllTiers(rawTiers);
 
-  // Step 5: Detect surge patterns
+  // Step 6: Detect surge patterns
   const surgePatterns = detectSurge(cleanSamples, surgeThreshold);
   const surgeHours = aggregateSurgeHours(surgePatterns);
 
-  // Step 6: Zone analysis
+  // Step 7: Zone analysis
   const zones = analyzeByZone(cleanSamples);
   const zoneTypes = analyzeByZoneType(cleanSamples);
 
@@ -66,7 +79,7 @@ export async function runAnalysis(
   };
 
   // Print summary
-  printSummary(report, baseSamples, surgeHours, zoneTypes);
+  printSummary(report, baseSamples, surgeHours, zoneTypes, surgeThreshold);
 
   return report;
 }
@@ -75,12 +88,14 @@ function printSummary(
   report: AnalysisReport,
   baseSamples: RideSample[],
   surgeHours: ReturnType<typeof aggregateSurgeHours>,
-  zoneTypes: ReturnType<typeof analyzeByZoneType>
+  zoneTypes: ReturnType<typeof analyzeByZoneType>,
+  surgeThreshold: number
 ): void {
   const sep = '═══════════════════════════════════════════════════════';
   console.log(`\n${sep}`);
   console.log(`  📊 Pricing Analysis Report — ${report.competitorName} (${report.countryCode})`);
   console.log(`  ${report.totalSamples} total samples, ${baseSamples.length} base-price samples`);
+  console.log(`  Surge threshold: ${surgeThreshold.toFixed(3)} (dynamic, 5% of median)`);
   console.log(`  Analyzed at: ${report.analyzedAt}`);
   console.log(sep);
 
@@ -91,7 +106,7 @@ function printSummary(
     if (reg) {
       const tierIcon = tier.label === 'economy' ? '💰' : tier.label === 'standard' ? '🚗' : '💎';
       console.log(`  ${tierIcon} ${tier.label.toUpperCase()}:`);
-      console.log(`    Base Fare: ${reg.baseFare.toFixed(3)} ${report.countryCode === 'JO' ? 'JOD' : report.countryCode === 'SY' ? 'SYP' : 'CUR'}`);
+      console.log(`    Base Fare: ${reg.baseFare.toFixed(3)} ${report.countryCode === 'JO' ? 'JOD' : report.countryCode === 'SY' ? 'SYP' : report.countryCode === 'IQ' ? 'IQD' : 'CUR'}`);
       console.log(`    Per KM:    ${reg.kmRate.toFixed(3)}`);
       console.log(`    Per Min:   ${reg.minRate.toFixed(3)}`);
       console.log(`    Min Fare:  ${reg.minFare.toFixed(3)} ${reg.hasMinFare ? '✅ active' : ''}`);
diff --git a/backend/pricing-engine/src/analysis/regression.ts b/backend/pricing-engine/src/analysis/regression.ts
index 2980b027..ce756a16 100644
--- a/backend/pricing-engine/src/analysis/regression.ts
+++ b/backend/pricing-engine/src/analysis/regression.ts
@@ -93,28 +93,3 @@ export function analyzeTier(tier: PricingTier): PricingTier {
 export function analyzeAllTiers(tiers: PricingTier[]): PricingTier[] {
   return tiers.map(tier => analyzeTier(tier));
 }
-
-/**
- * Simple distance-only regression for comparison.
- * price = kmRate * dist
- */
-export function distanceOnlyRegression(
-  samples: RideSample[]
-): { kmRate: number; rmse: number } | null {
-  if (samples.length < 3) return null;
-
-  const distances = samples.map(s => s.distance_km);
-  const prices = samples.map(s => s.price);
-
-  // Simple average of price/km
-  const ratios = distances.map((d, i) => d > 0 ? prices[i] / d : 0)
-    .filter(r => r > 0 && isFinite(r));
-
-  if (ratios.length < 3) return null;
-
-  const kmRate = mean(ratios);
-  const predicted = distances.map(d => kmRate * d);
-  const rmse = calcRMSE(prices, predicted);
-
-  return { kmRate, rmse };
-}
diff --git a/backend/pricing-engine/src/analysis/zone.ts b/backend/pricing-engine/src/analysis/zone.ts
index 92b4808d..e438860c 100644
--- a/backend/pricing-engine/src/analysis/zone.ts
+++ b/backend/pricing-engine/src/analysis/zone.ts
@@ -55,6 +55,7 @@ export function analyzeByZone(samples: RideSample[]): ZoneAnalysis[] {
 
 /**
  * Analyze pricing by zone type (centre, mid, suburb, outskirts).
+ * Passes countryCode to classifyZoneType so the correct city center is used.
  */
 export function analyzeByZoneType(
   samples: RideSample[]
@@ -62,7 +63,8 @@ export function analyzeByZoneType(
   const typeMap = new Map<string, number[]>();
 
   for (const s of samples) {
-    const zoneType = classifyZoneType(s.startLat, s.startLng);
+    // Pass countryCode so we use the correct city center (not always Amman)
+    const zoneType = classifyZoneType(s.startLat, s.startLng, s.countryCode);
     if (!typeMap.has(zoneType)) typeMap.set(zoneType, []);
     typeMap.get(zoneType)!.push(s.ppk);
   }
diff --git a/backend/pricing-engine/src/index.ts b/backend/pricing-engine/src/index.ts
index ba587d0c..3b6f73ec 100644
--- a/backend/pricing-engine/src/index.ts
+++ b/backend/pricing-engine/src/index.ts
@@ -52,7 +52,7 @@ async function main(): Promise<void> {
   const opts = parseArgs();
   const startTime = Date.now();
 
-  console.log(`🚀 Siro Pricing Engine v1.0`);
+  console.log(`🚀 Siro Pricing Engine v1.1`);
   console.log(`   Mode: ${opts.mode}`);
   if (opts.competitor) console.log(`   Competitor: ${opts.competitor}`);
   if (opts.country) console.log(`   Country: ${opts.country}`);
@@ -95,6 +95,67 @@ async function main(): Promise<void> {
   }
 }
 
+/**
+ * Compute the peak hours array from surge pattern data.
+ * Returns the longest contiguous block of hours where avg multiplier > 1.05.
+ * Used by both formula saving and surge insight saving.
+ */
+function computePeakHours(surgePatterns: Array<{ surgePrices: Array<{ time: string; multiplier: number }> }>): {
+  peakHours: number[];
+  peakStart: number;
+  peakEnd: number;
+} {
+  // Aggregate all route multipliers per hour of day
+  const hourMults = new Map<number, number[]>();
+  for (const sr of surgePatterns) {
+    for (const sp of sr.surgePrices) {
+      const h = parseInt(sp.time.split(':')[0]);
+      if (isNaN(h)) continue;
+      if (!hourMults.has(h)) hourMults.set(h, []);
+      hourMults.get(h)!.push(sp.multiplier);
+    }
+  }
+
+  // Keep only hours where the average multiplier exceeds 1.05
+  const peakHours: number[] = [];
+  for (const [h, mults] of hourMults) {
+    const avg = mults.reduce((a, b) => a + b, 0) / mults.length;
+    if (avg > 1.05) peakHours.push(h);
+  }
+  peakHours.sort((a, b) => a - b);
+
+  // Find the longest contiguous block of peak hours
+  let bestStart = 0, bestEnd = 0, bestLen = 0;
+  let curStart = -1, curEnd = -1;
+
+  for (let i = 0; i < peakHours.length; i++) {
+    if (curStart < 0) {
+      curStart = peakHours[i];
+      curEnd = peakHours[i];
+    } else if (peakHours[i] === curEnd + 1) {
+      curEnd = peakHours[i];
+    } else {
+      if (curEnd - curStart > bestLen) {
+        bestLen = curEnd - curStart;
+        bestStart = curStart;
+        bestEnd = curEnd;
+      }
+      curStart = peakHours[i];
+      curEnd = peakHours[i];
+    }
+  }
+  if (curEnd - curStart > bestLen) {
+    bestLen = curEnd - curStart;
+    bestStart = curStart;
+    bestEnd = curEnd;
+  }
+
+  const peakStart = bestLen > 0 ? bestStart : 0;
+  const peakEnd   = bestLen > 0 ? bestEnd   : 23;
+
+  return { peakHours, peakStart, peakEnd };
+}
+
 async function processCompetitor(
   pool: Pool,
   comp: CompetitorEntry,
@@ -126,11 +187,18 @@ async function processCompetitor(
     competitorName: comp.competitor_name,
     countryCode: comp.country_code,
     cleanOutliers: true,
-    surgeThreshold: 0.12,
+    // surgeThresholdFraction defaults to 0.05 (5% of median price) — currency-agnostic
     tierCount: 3,
   });
 
-  // Save tier formulas
+  // --- Compute peak hours once, reuse in both formulas and surge insights ---
+  const { peakHours, peakStart, peakEnd } = report.surgePatterns.length > 0
+    ? computePeakHours(report.surgePatterns)
+    : { peakHours: [], peakStart: 0, peakEnd: 23 };
+
+  const peakHoursJson = JSON.stringify(peakHours);
+
+  // --- Save tier formulas (includes actual peak hours) ---
   const formulas = report.tiers
     .filter(t => t.regression !== null && t.regression!.sampleCount >= 5)
     .map(tier => ({
@@ -145,29 +213,23 @@ async function processCompetitor(
       rSquared: tier.regression!.rSquared,
       sampleCount: tier.regression!.sampleCount,
       surgeMultiplier: 1.0,
-      peakHours: '[]',
+      // Now populated with real peak hours instead of always '[]'
+      peakHours: peakHoursJson,
     }));
 
   if (formulas.length > 0) {
     await saveFormulas(pool, formulas);
     console.log(`   ✅ Saved ${formulas.length} tier formulas`);
+    if (peakHours.length > 0) {
+      console.log(`      Peak hours stored: [${peakHours.join(', ')}]`);
+    }
   }
 
-  // Save surge insights — use the average multiplier across all detected routes
+  // --- Save surge insights ---
   if (opts.mode !== 'report' && report.surgePatterns.length > 0) {
     const avgMultiplier = report.surgePatterns
       .reduce((sum, sr) => sum + sr.maxMultiplier, 0) / report.surgePatterns.length;
 
-    // Find peak hour range from aggregate pattern
-    const allHours = report.surgePatterns.flatMap(sr =>
-      sr.surgePrices
-        .filter(sp => sp.multiplier > 1.05)
-        .map(sp => parseInt(sp.time.split(':')[0]))
-    );
-
-    const peakStart = allHours.length > 0 ? Math.min(...allHours) : 0;
-    const peakEnd = allHours.length > 0 ? Math.max(...allHours) : 23;
-
     const surgeInsights = [{
       competitorName: comp.competitor_name,
       countryCode: comp.country_code,
@@ -178,7 +240,7 @@ async function processCompetitor(
     }];
 
     await saveSurgeInsights(pool, surgeInsights);
-    console.log(`   ✅ Saved surge insight: avg ${(avgMultiplier).toFixed(3)}x, hours ${peakStart}:00-${peakEnd}:00`);
+    console.log(`   ✅ Saved surge insight: avg ${avgMultiplier.toFixed(3)}x, hours ${peakStart}:00-${peakEnd}:00`);
   }
 }
 
diff --git a/backend/pricing-engine/src/utils/math.ts b/backend/pricing-engine/src/utils/math.ts
index cca531fb..924c58e2 100644
--- a/backend/pricing-engine/src/utils/math.ts
+++ b/backend/pricing-engine/src/utils/math.ts
@@ -1,13 +1,5 @@
-/**
- * Matrix and statistical utilities for pricing analysis.
- * Pure math — no external dependencies except simple-statistics.
- */
+import { median, mean } from 'simple-statistics';
 
-import { median, mean, standardDeviation } from 'simple-statistics';
-
-/**
- * Compute Pearson correlation between two arrays.
- */
 function pearsonCorr(x: number[], y: number[]): number {
   const n = Math.min(x.length, y.length);
   if (n < 3) return 0;
@@ -25,64 +17,53 @@ function pearsonCorr(x: number[], y: number[]): number {
   return denom === 0 ? 0 : num / denom;
 }
 
-/**
- * Multiple linear regression via Gaussian elimination with ridge regularization.
- * Solves: price = baseFare + kmRate*distance + minRate*duration
- *
- * Uses L2 ridge (lambda=0.1) when distance≈duration are collinear.
- * Falls back to distance-only model if necessary.
- */
 export function multipleLinearRegression(
   samples: Array<{ distance_km: number; duration_min: number; price: number }>
 ): { baseFare: number; kmRate: number; minRate: number } | null {
   const n = samples.length;
   if (n < 3) return null;
 
-  // Check collinearity: if distance and duration are highly correlated
   const dists = samples.map(s => s.distance_km);
   const durs = samples.map(s => s.duration_min);
+  const prices = samples.map(s => s.price);
   const corr = pearsonCorr(dists, durs);
-
-  const lambda = Math.abs(corr) > 0.85 ? 0.5 : 0.01; // ridge penalty
+  const lambda = Math.abs(corr) > 0.85 ? 0.5 : 0.01;
 
   let sumX1 = 0, sumX2 = 0, sumY = 0;
   let sumX1Sq = 0, sumX2Sq = 0, sumX1X2 = 0;
   let sumX1Y = 0, sumX2Y = 0;
 
   for (const s of samples) {
-    const x1 = s.distance_km;
-    const x2 = s.duration_min;
-    const y = s.price;
-
+    const x1 = s.distance_km, x2 = s.duration_min, y = s.price;
     sumX1 += x1; sumX2 += x2; sumY += y;
     sumX1Sq += x1 * x1; sumX2Sq += x2 * x2; sumX1X2 += x1 * x2;
     sumX1Y += x1 * y; sumX2Y += x2 * y;
   }
 
-  // Ridge: add lambda to diagonal of X^T X (except intercept)
   const A = [
-    [n,            sumX1,           sumX2],
-    [sumX1,  sumX1Sq + lambda, sumX1X2],
-    [sumX2,  sumX1X2,          sumX2Sq + lambda],
+    [n, sumX1, sumX2],
+    [sumX1, sumX1Sq + lambda, sumX1X2],
+    [sumX2, sumX1X2, sumX2Sq + lambda],
   ];
-
   const B = [sumY, sumX1Y, sumX2Y];
 
   try {
     const beta = gaussianElimination(A, B);
-    const baseFare = Math.max(0, beta[0]);
+    let baseFare = Math.max(0, beta[0]);
     let kmRate = Math.max(0, beta[1]);
     let minRate = Math.max(0, beta[2]);
 
-    // If minRate is essentially zero after ridge, keep it minimal
-    if (minRate < 0.001) minRate = 0;
+    const predFull = samples.map(s => baseFare + kmRate * s.distance_km + minRate * s.duration_min);
+    const rmseFull = calcRMSE(prices, predFull);
 
-    // If both non-intercept terms are zero, try distance-only model
-    if (kmRate === 0 && minRate === 0) {
-      const k = sumX1Y / (sumX1Sq + lambda);
-      if (k > 0) {
-        kmRate = k;
-      }
+    const ratioK = dists.reduce((a, d, i) => d > 0 ? a + prices[i] / d : a, 0) / dists.filter(d => d > 0).length;
+    if (!isFinite(ratioK)) return { baseFare, kmRate, minRate };
+
+    const predDistOnly = dists.map(d => ratioK * d);
+    const rmseDist = calcRMSE(prices, predDistOnly);
+
+    if (rmseDist <= rmseFull * 1.10) {
+      return { baseFare: 0, kmRate: Math.round(ratioK * 1000) / 1000, minRate: 0 };
     }
 
     return { baseFare, kmRate, minRate };
@@ -91,10 +72,6 @@ export function multipleLinearRegression(
   }
 }
 
-/**
- * Robust iterative regression to find floor pricing (exclude surge outliers).
- * Uses a fixed JOD/SYP threshold per iteration instead of tightening RMSE.
- */
 export function robustMultipleLinearRegression(
   samples: Array<{ distance_km: number; duration_min: number; price: number }>,
   maxIterations: number = 4
@@ -103,7 +80,6 @@ export function robustMultipleLinearRegression(
   let bestModel = multipleLinearRegression(currentSamples);
   if (!bestModel) return null;
 
-  // Determine threshold from data scale (median price × 0.3)
   const prices = samples.map(s => s.price).sort((a, b) => a - b);
   const medianPrice = prices[Math.floor(prices.length / 2)];
   const fixedThreshold = Math.max(medianPrice * 0.3, 0.1);
@@ -113,214 +89,160 @@ export function robustMultipleLinearRegression(
       s => bestModel!.baseFare + bestModel!.kmRate * s.distance_km + bestModel!.minRate * s.duration_min
     );
     const actual = currentSamples.map(s => s.price);
-
-    const inliers = currentSamples.filter((s, idx) => {
-      const residual = actual[idx] - predicted[idx];
-      return residual < fixedThreshold;
-    });
+    const inliers = currentSamples.filter((_, idx) => actual[idx] - predicted[idx] < fixedThreshold);
 
     if (inliers.length < Math.max(5, samples.length * 0.3)) break;
     if (inliers.length === currentSamples.length) break;
-
     currentSamples = inliers;
     const newModel = multipleLinearRegression(currentSamples);
     if (!newModel) break;
     bestModel = newModel;
   }
-
   return bestModel;
 }
 
-/**
- * Gaussian elimination for solving Ax = B (3x3 system).
- */
 function gaussianElimination(A: number[][], B: number[]): number[] {
   const n = A.length;
   const a = A.map(row => [...row]);
   const b = [...B];
-
   for (let i = 0; i < n; i++) {
-    let maxEl = Math.abs(a[i][i]);
-    let maxRow = i;
+    let maxEl = Math.abs(a[i][i]), maxRow = i;
     for (let k = i + 1; k < n; k++) {
-      if (Math.abs(a[k][i]) > maxEl) {
-        maxEl = Math.abs(a[k][i]);
-        maxRow = k;
-      }
+      if (Math.abs(a[k][i]) > maxEl) { maxEl = Math.abs(a[k][i]); maxRow = k; }
     }
-
     [a[maxRow], a[i]] = [a[i], a[maxRow]];
     [b[maxRow], b[i]] = [b[i], b[maxRow]];
-
     if (Math.abs(a[i][i]) < 1e-12) continue;
-
     for (let k = i + 1; k < n; k++) {
       const c = -a[k][i] / a[i][i];
       for (let j = i; j < n; j++) {
-        if (i === j) a[k][j] = 0;
-        else a[k][j] += c * a[i][j];
+        if (i === j) a[k][j] = 0; else a[k][j] += c * a[i][j];
       }
       b[k] += c * b[i];
     }
   }
-
   const x = new Array(n).fill(0);
   for (let i = n - 1; i >= 0; i--) {
     if (Math.abs(a[i][i]) < 1e-12) continue;
     x[i] = b[i] / a[i][i];
-    for (let k = i - 1; k >= 0; k--) {
-      b[k] -= a[k][i] * x[i];
-    }
+    for (let k = i - 1; k >= 0; k--) b[k] -= a[k][i] * x[i];
   }
   return x;
 }
 
-/**
- * Calculate RMSE between predicted and actual values.
- */
 export function calcRMSE(actual: number[], predicted: number[]): number {
   const n = Math.min(actual.length, predicted.length);
   if (n === 0) return Infinity;
-  const sumSq = actual.reduce((sum, a, i) => {
-    if (i >= predicted.length) return sum;
-    return sum + (a - predicted[i]) ** 2;
-  }, 0);
-  return Math.sqrt(sumSq / n);
+  return Math.sqrt(actual.reduce((sum, a, i) => i < predicted.length ? sum + (a - predicted[i]) ** 2 : sum, 0) / n);
 }
 
-/**
- * Calculate R² coefficient of determination.
- */
 export function calcRSquared(actual: number[], predicted: number[]): number {
   const n = Math.min(actual.length, predicted.length);
   if (n < 2) return 0;
   const meanActual = mean(actual);
   const ssTot = actual.reduce((sum, y) => sum + (y - meanActual) ** 2, 0);
   if (ssTot === 0) return 1;
-  const ssRes = actual.reduce((sum, y, i) => {
-    if (i >= predicted.length) return sum;
-    return sum + (y - predicted[i]) ** 2;
-  }, 0);
-  return 1 - ssRes / ssTot;
+  return 1 - actual.reduce((sum, y, i) => i < predicted.length ? sum + (y - predicted[i]) ** 2 : sum, 0) / ssTot;
 }
 
-/**
- * Median Absolute Deviation outlier detection.
- * Returns indices of inlier samples.
- */
-export function findInliersMAD(
-  values: number[],
-  threshold: number = 3.5
-): number[] {
+export function findInliersMAD(values: number[], threshold: number = 3.5): number[] {
   const med = median(values);
-  const absDevs = values.map(v => Math.abs(v - med));
-  const mad = median(absDevs);
+  const mad = median(values.map(v => Math.abs(v - med)));
   if (mad === 0) return values.map((_, i) => i);
-
-  return values
-    .map((v, i) => ({ v, i, modifiedZ: 0.6745 * Math.abs(v - med) / mad }))
-    .filter(x => x.modifiedZ < threshold)
-    .map(x => x.i);
+  return values.map((v, i) => ({ v, i, z: 0.6745 * Math.abs(v - med) / mad }))
+    .filter(x => x.z < threshold).map(x => x.i);
 }
 
 /**
- * K-Means clustering (for PPK-based tier detection).
- * Returns cluster assignments (0..k-1) for each sample.
+ * Compute K-Means inertia (sum of squared distances from each point to its centroid).
+ * Lower inertia = better clustering.
+ */
+function calcInertia(values: number[], assignments: number[], centroids: number[]): number {
+  return values.reduce((sum, v, i) => sum + (v - centroids[assignments[i]]) ** 2, 0);
+}
+
+/**
+ * Single K-Means run. Returns assignments, centroids, and inertia.
+ */
+function kMeansOnce(
+  values: number[],
+  k: number,
+  maxIterations: number
+): { assignments: number[]; centroids: number[]; inertia: number } {
+  // K-Means++ seeding for better initialisation
+  const centroids: number[] = [];
+  centroids.push(values[Math.floor(Math.random() * values.length)]);
+  for (let c = 1; c < k; c++) {
+    const dists = values.map(v => Math.min(...centroids.map(cent => (v - cent) ** 2)));
+    const total = dists.reduce((a, b) => a + b, 0);
+    let r = Math.random() * total;
+    for (let i = 0; i < dists.length; i++) {
+      r -= dists[i];
+      if (r <= 0) { centroids.push(values[i]); break; }
+    }
+    // Fallback: if loop exits without pushing (floating point edge case)
+    if (centroids.length < c + 1) centroids.push(values[values.length - 1]);
+  }
+
+  const assignments = new Array(values.length).fill(0);
+  for (let iter = 0; iter < maxIterations; iter++) {
+    let changed = false;
+    for (let i = 0; i < values.length; i++) {
+      let minDist = Infinity, best = 0;
+      for (let c = 0; c < k; c++) {
+        const dist = Math.abs(values[i] - centroids[c]);
+        if (dist < minDist) { minDist = dist; best = c; }
+      }
+      if (assignments[i] !== best) { assignments[i] = best; changed = true; }
+    }
+    if (!changed) break;
+    for (let c = 0; c < k; c++) {
+      const clusterVals = values.filter((_, i) => assignments[i] === c);
+      if (clusterVals.length > 0) centroids[c] = mean(clusterVals);
+    }
+  }
+
+  const inertia = calcInertia(values, assignments, centroids);
+  return { assignments, centroids, inertia };
+}
+
+/**
+ * K-Means clustering with multiple restarts.
+ * Runs `runs` times and returns the assignment with the lowest inertia,
+ * eliminating randomness instability across different executions.
  */
 export function kMeans(
   values: number[],
   k: number,
-  maxIterations: number = 100
+  maxIterations: number = 100,
+  runs: number = 8
 ): number[] {
   if (values.length < k) return values.map(() => 0);
 
-  // Initialize centroids using k-means++
-  let centroids: number[] = [];
-  centroids.push(values[Math.floor(Math.random() * values.length)]);
-  for (let c = 1; c < k; c++) {
-    const dists = values.map(v => Math.min(
-      ...centroids.map(cent => Math.abs(v - cent))
-    ));
-    const totalDist = dists.reduce((a, b) => a + b, 0);
-    let r = Math.random() * totalDist;
-    for (let i = 0; i < dists.length; i++) {
-      r -= dists[i];
-      if (r <= 0) {
-        centroids.push(values[i]);
-        break;
-      }
+  let bestResult: { assignments: number[]; centroids: number[]; inertia: number } | null = null;
+
+  for (let run = 0; run < runs; run++) {
+    const result = kMeansOnce(values, k, maxIterations);
+    if (bestResult === null || result.inertia < bestResult.inertia) {
+      bestResult = result;
     }
   }
 
-  const assignments = new Array(values.length).fill(0);
-
-  for (let iter = 0; iter < maxIterations; iter++) {
-    // Assign
-    let changed = false;
-    for (let i = 0; i < values.length; i++) {
-      let minDist = Infinity;
-      let bestCluster = 0;
-      for (let c = 0; c < k; c++) {
-        const dist = Math.abs(values[i] - centroids[c]);
-        if (dist < minDist) {
-          minDist = dist;
-          bestCluster = c;
-        }
-      }
-      if (assignments[i] !== bestCluster) {
-        assignments[i] = bestCluster;
-        changed = true;
-      }
-    }
-
-    if (!changed) break;
-
-    // Update centroids
-    for (let c = 0; c < k; c++) {
-      const clusterVals = values.filter((_, i) => assignments[i] === c);
-      if (clusterVals.length > 0) {
-        centroids[c] = mean(clusterVals);
-      }
-    }
-  }
-
-  // Sort clusters by centroid value (ascending: economy < standard < premium)
-  const centroidOrder = centroids
-    .map((c, i) => ({ centroid: c, index: i }))
-    .sort((a, b) => a.centroid - b.centroid);
-
-  const labelMap = new Map<number, number>();
-  centroidOrder.forEach((item, newIdx) => labelMap.set(item.index, newIdx));
-
-  return assignments.map(a => labelMap.get(a)!);
+  // Re-order cluster indices so label 0 = lowest centroid (economy), etc.
+  const { assignments, centroids } = bestResult!;
+  const order = centroids.map((c, i) => ({ c, i })).sort((a, b) => a.c - b.c);
+  const map = new Map(order.map((item, idx) => [item.i, idx]));
+  return assignments.map(a => map.get(a)!);
 }
 
-/**
- * Find "knee point" in price-vs-distance curve for minimum fare detection.
- * Uses simple piecewise linear fit.
- */
-export function detectMinimumFare(
-  distances: number[],
-  prices: number[],
-  kmRate: number
-): number | null {
+export function detectMinimumFare(distances: number[], prices: number[], kmRate: number): number | null {
   if (distances.length < 5) return null;
-
-  // Sort by distance
-  const pairs = distances.map((d, i) => ({ d, p: prices[i] }))
-    .sort((a, b) => a.d - b.d);
-
-  // Compute expected price without min fare
-  const residuals = pairs.map(({ d, p }) => p - kmRate * d);
-
-  // Find where actual price consistently exceeds predicted
-  // The minimum fare is the max of (price - kmRate*dist) for short rides
-  const shortRides = pairs.filter(({ d }) => d < 10);
-  if (shortRides.length < 3) return null;
-
-  const minFareEstimate = Math.max(
-    ...shortRides.map(({ d, p }) => p - kmRate * d)
-  );
-
-  return minFareEstimate > 0 ? Math.round(minFareEstimate * 100) / 100 : null;
+  const pairs = distances.map((d, i) => ({ d, p: prices[i] })).sort((a, b) => a.d - b.d);
+  const shortCount = Math.max(5, Math.floor(pairs.length * 0.3));
+  const shortRides = pairs.slice(0, shortCount);
+  const residuals = shortRides.map(({ d, p }) => p - kmRate * d).sort((a, b) => a - b);
+  const trimIdx = Math.max(0, Math.floor(residuals.length * 0.1));
+  const trimmed = residuals.slice(trimIdx, residuals.length - trimIdx);
+  const estimate = trimmed.length > 0 ? Math.max(...trimmed) : 0;
+  return estimate > 0 ? Math.round(estimate * 100) / 100 : null;
 }
diff --git a/backend/schema_primary.sql b/backend/schema_primary.sql
index 55a1bdbd..27b8ff05 100644
--- a/backend/schema_primary.sql
+++ b/backend/schema_primary.sql
@@ -2146,3 +2146,33 @@ INSERT IGNORE INTO `api_quotas` (`service_name`, `daily_usage`, `quota_limit`, `
 ('gemini', 0, 100, CURDATE()),
 ('elevenlabs', 0, 5, CURDATE()),
 ('creatomate', 0, 2, CURDATE());
+
+-- 3. Competitor Analysis & Surge Pricing Engine Tables
+CREATE TABLE IF NOT EXISTS `competitor_secret_formulas` (
+  `id` INT AUTO_INCREMENT PRIMARY KEY,
+  `competitor_name` VARCHAR(100) NOT NULL,
+  `country_code` VARCHAR(10) NOT NULL,
+  `tier` VARCHAR(20) DEFAULT 'standard',
+  `base_fare` DECIMAL(8,3) NOT NULL,
+  `price_per_km` DECIMAL(8,3) NOT NULL,
+  `price_per_min` DECIMAL(8,3) NOT NULL,
+  `min_fare` DECIMAL(8,3) DEFAULT 0,
+  `rmse` DECIMAL(10,4) DEFAULT 0,
+  `r_squared` DECIMAL(10,4) DEFAULT 0,
+  `surge_multiplier` DECIMAL(5,3) DEFAULT 1.0,
+  `sample_size` INT DEFAULT 0,
+  `last_updated` TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP ON UPDATE CURRENT_TIMESTAMP,
+  UNIQUE KEY `idx_comp_country_tier` (`competitor_name`, `country_code`, `tier`)
+) ENGINE=InnoDB DEFAULT CHARSET=utf8mb4;
+
+CREATE TABLE IF NOT EXISTS `competitor_surge_insights` (
+  `id` INT AUTO_INCREMENT PRIMARY KEY,
+  `competitor_name` VARCHAR(100) NOT NULL,
+  `country_code` VARCHAR(5) NOT NULL,
+  `surge_multiplier` DECIMAL(5,3) NOT NULL,
+  `peak_start_hour` INT NOT NULL,
+  `peak_end_hour` INT NOT NULL,
+  `sample_count` INT NOT NULL,
+  `detected_at` TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+  UNIQUE KEY `unique_surge` (`competitor_name`, `country_code`, `peak_start_hour`, `peak_end_hour`)
+) ENGINE=InnoDB DEFAULT CHARSET=utf8mb4;