1. Estimated fares
When the passenger fills in the necessary information about the pickup and destination addresses, we use this information to calculate the route and give an estimation of what the final fare might be. We use several factors while calculating the estimated fare, such as:
- Base fare – A flat fee charged at the beginning of the ride.
- Cost per minute – How much the passenger is charged for each minute of the ride.
- Surge/dynamic pricing - A multiplier added to the fare, but not added to any fees.
- Cost per km - How much the passenger is charged per kilometer for the ride.
These fares are subjected to changes, for example, traffic jams, additional stops, etc.
2. Final fare
The final fare that the passenger will need to pay is calculated by the taximeter, which all drivers use. In case the final fare calculated from the taximeter is lower than the estimated fare by 15%, the passenger will pay the estimated ride price, not the actual one given by the taximeter.
Furthermore, it's important to point out that these fares change depending on the car type selected while the passenger is making a ride request.
3. Surge Pricing
The idea behind surge pricing is to adjust prices of rides to match driver supply to passenger demand at any given time. During periods of excessive demand when there are many more passengers than there are drivers, or when there aren’t enough drivers on the road and passenger wait times are longer, Vertt will increase its normal fares.
Example: On a Friday night, the fare may be higher than the normal fare. When surge pricing is in effect, the passengers are informed that their fares will be higher, and they have to confirm and agree to pay the amount in order to request the ride. Only then will a driver be matched to pick them up.
The surge pricing for any trip is based on the passenger's pickup location. While the driver may receive a ride request while the vehicle is in a surge pricing area, the passenger’s pick up location may not be.