Fare management is an integral part of any industry, and taxi business is no exception. One wrong move and you can lose customers to your competitors, putting an end to your business growth. And so, to ensure channelized cash flow while engaging more customers, taxi operators need a reliable fare management system. Here is how TaxiMobility can automate fare management and make the process a cakewalk for taxi owners.
Fares differ from one ride to the other based on various factors such as distance traveled, time taken to cover the distance, vehicle type, vehicle waiting time and much more. With the multitude of components involved in fare estimation, calculating ride fares using manual methods is time-consuming. On the contrary, TaxiMobility executes the predefined terms and conditions to give precise fare output in no time.
Here’s how you can set your own ride fares based on multiple criteria:
Distance-based fare
In distance-based fare calculation, the taxi operator sets a minimum fare for a fixed minimum distance. A passenger traveling less than or equal to the minimum distance pays a total cost which covers the minimum fare and a certain percentage of tax fixed by the taxi operator.
Distance-based fare estimation beyond the minimum distance can be calculated in three ways and the taxi operators can choose the one they prefer.
(i) Miles/ Km – based
When a ride exceeds the minimum distance, the total fare includes the basic service fare (base fare), the charge per extra kilometre and the predefined tax percentage.
(ii) Range-based
The taxi operator can fix a certain ride range and set separate fares for rides below and above it. In this case, the ride fare is calculated after taking into consideration if the corresponding ride is below the range or above it. The total fare also includes base fare and tax.
Let’s say, the range is 25 miles with a base fare of $10 USD. Similarly, consider the ride fares to be $30 USD for below the range and $40 USD for above the range. Based on the distance traveled, the passenger will be charged the range- wise fare.
(iii) Zone-based
The taxi operator can create various geo zones by drawing virtual boundaries across locations. Passengers are charged zone-based ride fares when they travel from one location to the other within a geo zone or from one geo-zone to the other.
Time-based fare
When it comes to time-based fare calculation, the total minutes of the ride is noted with a fixed fare for each minute. Here, the assigned vehicle maintains a specified speed in order to cover the given distance within the stipulated time. Waiting charges are applied in case of delay. The digital solution also allows the taxi operators to set exclusive fares for evening and night rides respectively.
Ride packages
When the pickup and drop location exceed city limits, a ride shifts from normal to rental or outstation, prompting the passenger to choose between the two. For rental and outstation packages, the taxi operator is free to choose between time and distance or take both criteria to calculate the ride fare.
Want to automate fare estimation for your taxi business and make revenue management easier?