Careem has launched another way of calculating the prices from their initial price model, the largest Internet platform in the Middle East.
The price model improves the riding experience for passengers, who are now more certain about the exact fare before beginning their ride (press’ Chalo’) and for the captains, as they gain a greater insight into their profits when approving the trip.
Initial data reveals that upfront fares tend to have an incremental impact on the number of rides taken by customers because it’s simple in comparison to fare range and provides more transparency.
For example, customers booking a ride which gives them a fare of PKR 200 vs a fare between 180 and 230 are more likely to press “Chalo”. Zeeshan Hasib Baig, General Manager Careem Pakistan
The upfront pricing model is an extremely exciting development and is a perfect example of Careem’s mission of simplifying and improving the lives of both customers and Captains. We believe that better customer and captain experience is the only way to keep growing.
The upfront fare at the start of the ride will be calculated on the basis of the total distance from pick-up to drop-off as well as estimated time on existing rates applicable in a particular city. In cases where peak factor applies, the upfront fare shown will take it into account.
In some cases where a longer route is taken, pick-up or drop-off is changed or the ride takes an unusually long time (due to heavy traffic, roadblocks, toll charges), the fare will change accordingly. For such trips, the fare will reflect the actual distance traveled and time taken based on the existing fare rates in your city.