Thursday, August 18, 2016

Pricing adjustments to the last drop remove drivers 20 into

Pricing adjustments to the last drop: remove drivers 20% into

China drops buy Uber, about management programmes have been developed and local network is complete, users are concerned about the problem of taxi costs will rise. Kenzo case

Drops calls, after the merger, dynamic adjustment of taxi price as long as there are, there will always be the outside world in a more negative direction about, drop the driver had a confusion on pricing. Therefore, they want to introduce a more transparent, simple way of pricing. News said the surging, drops travel is currently in Beijing, Shanghai and other places experimenting with new pricing. New pricing for drivers and passengers separate valuation, valuation mode of the main changes is the driver and passenger side are not affected.

New pricing method cancels a previously imposed on drivers side 20% into every single charge 0.5 Yuan, plus 1.77% of management fees. In Beijing, for example, orders for 10 km, 20 minutes before the adjustment, owners of real income = (2*10+0.5*20) *80%=24; revised, owner of real income = (1.8*10+0.4*20) *100%=26.

Drops says new pricing adjustments, income compared with previous owners did not change significantly. Income to owners in some cities as drivers and passengers improved separation of valuation, up at around 10%-18%. It is reported that the passenger when separate pricing, basic fare (length km + night + cost) dynamic adjustment costs, other costs, 100% to all owners. Pricing will not be affected by the passenger-side effects of price fluctuations, and now operate as in the past.

Adjust pricing aims to the last drop:

Division pricing after the separation, the owner can be more intuitive to see their income, income details become clearer.

Owner directly through the owner side of the valuation rules to calculate their own income.

Kenzo case

Insiders say drops have been absolute market share from the recent subsidies, price changes, as well as altering the pricing actions, drops the decision logic seems to be from the market turns into a stable revenue in order to give capital more confidence.

Related reading:

Drops must be burning money? How to tell if O2O project business model work? Kenzo case

Drops of +UBER China: and cannot solve the problem can be solved

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