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How to Avoid Surge Pricing!

By June 11, 2019 No Comments

Surging is a fact of life or is it?

We all know that ride share companies us computer algorithms to predict demand for services, right. What does this mean for everyone.

For the ride share company it means that they get a higher commission from the driver. The driver he gets the chance to earn more for doing less. Of course the customer, well you foot the bill and pay for everyone. Is it really just supply and demand that dictates the “SURGE”, or can it be manipulated?

Well the truth is, drivers manipulate the algorithms to ensure that customers are required to pay more. “HOW”, you say. Well its easy, if a driver sits outside an area where a lot of requests are, and does not accept any jobs then demand will rise, thus surge pricing will follow to encourage the drivers to work that area. Drivers will also have the customer app on the phone to trick the system in to surging

The ride share companies say that surging is used to encourage more drivers to go to work. I’m not sure how that is possible, if a driver does not have the app on then how does he know that there is surging going on?

So how do we avoid the surge? 

Most taxi companies have a mobile phone app, and have done long before ride sharing. So what benefit does that have for you the customer?

Well, Cairns Taxis is just one taxi company that is continually improving its service and delivery of service. Having taken on GOOGLE voice recognition for phone calls, enabled the ability to book a taxi in under 10 seconds within the mobile app.

But how does all this help you avoid the surge? Taxi Companies in Queensland have regulated pricing, that means that pricing does not change with increase of demand (Consistent pricing is real). Cairns Taxis has not changed it pricing since 2014 and that was only an increase of $0.03 per kilometer.

Knowing that Taxis are the same price consistently regardless of demand will enable better trip planning.

Customers want a quote / estimate? Sure the mobile app will provide one, once the destination is entered, or ask the operator for a quote at time of booking.

BUT WAIT, THERE’S MORE

Ride share companies also charge credit card fees to process your money, Cairns Taxis have instigated a credit card fee freeze with bookings made through the mobile app.

ABSOLUTELY NO CREDIT CARD FEES.

Taxis also do not charge you for cancellations, ride share companies still charge a minimum fee regardless.

 

SO AVOID THE SURGE AND PATRONIZE YOUR LOCAL TAXI COMPANY.