What does "Hiking" mean?

This noun means the activity of going for long walks in the country for pleasure: go hiking.
It is the noun 'hike' (NOT hiking) that means 'a large or sudden increase in prices, costs, etc.': a hike in prices, a price hike.
If the company is using the noun 'hike' which also means ' a long walk in the country', so it has to change its name because it is confusing as your friend said.
However, there's no need to change it if it is using 'Hiking' which means 'the activity of going for long walks in the country for pleasure'.