Taxi-hailing businesses have long since followed in the footsteps of Uber. Uber clone apps have adopted its features for offering the services of their own. While Uber clone taxi apps are known to offer upfront pricing, they have recently introduced the surge pricing feature to address the growing demand for taxi rides.
What is surge pricing?
There are many instances when the demand for taxi rides is extremely high and there aren’t sufficient taxi drivers to meet this demand. During such situations, the fares are increased based on the multiplying factor, i.e. either 1.5X more fares or 5X increase in prices. Once there are enough taxis available to take the ride requests, the fares will switch back to normal.
This type of pricing lets users who are in need of a ride to hire cabs immediately. Based on the urgency, customers may pay the additional fare or wait for the fares to drop before hailing a taxicab on the uber clone app.
Factors that influence surge pricing
The surge factor is initiated based on various factors. Pricing will be determined based on the customer’s location and not the driver’s. Firstly, whenever the demand increases in a particular area, surge pricing comes into effect. This may be due to peak hours, bad weather or any natural events.
Secondly, taxi business owners of Uber-like apps determine key metrics for surge pricing. This may include odd hours (12 am to 4 am) or any special event that results in more requests.
Identifying surge areas
Surge pricing areas are highlighted using the color red. Lighter shades of red indicate small multipliers in pricing, while darker shades of red indicate larger multipliers. Drivers will be sent notifications based on the surge pricing through the uber clone apps.
Harness the advantages of Surge pricing for your taxi business to meet increasing demands and gain increased revenue with an Uber clone taxi app.