How iCabbi surge pricing tools can benefit your taxi business
29th November 2021
iCabbi surge pricing tools can benefit your business in such a way that business will boom this Christmas and beyond. They can help you in so many ways, we even put together a simple video explaining how. You can watch the surge pricing explanation, alongside our other videos by clicking on the image below:
What does surge pricing mean?
Surge pricing is simply when there is a ‘surge’ in demand for taxi bookings. If you know that journeys are in demand, then it would make sense to charge more. It’s just supply and demand and will improve your business model.
Perhaps the most exciting aspect of this is that it can all be automated and scheduled. As we have discussed in previous blogs, there are times when taxi drivers and staff know that nightclubs, pubs and bars will be busy. These are usually the times when it gets extra busy. Those visiting pubs and bars are likely to prefer taxi journeys over driving. For any taxi business, the aim is to turn that pub customer into a taxi passenger.
With iCabbi’s automated software, you can ensure you are prepared to offer a fantastic service, whilst also making your business more profitable. It just makes sense. If you’ve watched the video, you’ll see how easy it is too!
Essentially, the more passengers there are, the more money there is to be made for your firm.
How easy is it to implement surge pricing?
Very. We have Customer Success Executives who operate all over the country. If you are a client, you will already know all about them, but for any prospective clients, this highlights that we simply don’t deliver the software and leave you to it.
They are what their job says they are… Customer Success Executives with one goal; helping your taxi firm to become a success. Making life simpler for your drivers and making them happy is our ultimate aim.
The two things that make your drivers happy are making money and making the job simple. iCabbi’s surge pricing tool does exactly this. It allows all your drivers to be treated fairly and get their equal share of a busy time, whilst also making the most of the busy prices.
Can you predict a surge?
You won’t always be able to predict when it will get busy. There will be times though when you will be able to identify a date that will see a surge in demand for taxi journeys. Christmas eve is a great example as Keir and Darren mention in our video (yes, we really want you to watch it!).
There’s a whole section on scheduling your tariffs and increasing prices for particular dates in our video. So, it’s worth taking a look, but we’ve also included some details and info below.
When you know there will be a demand for business, it makes sense to raise your prices. The demand will still be there. Your competitors will be doing it and so should you. You can opt to increase the prices by percentage and also monetary value (£££).
Having the ability to introduce a modest surcharge at peak times could set you above your competitors. Using the iCabbi software, they might have to manually up their prices. With this dispatch software, you can be one step ahead and it automatically does it for you. That way, when passengers are scooting through looking for the cheapest journeys, they won’t be in for a shock when they find out your prices.
How much should you increase it by?
What’s more, to keep your drivers happy, you don’t even have to increase prices that much. Simply introducing a modest surcharge during peak times can be all you need to keep your drivers happy. As we referenced in our blog over 4 years ago, keeping your drivers happy can be the result of adding a small surcharge of £1 to each booking. For some drivers, this could result in a serious bonus of cash that month. We know this equals a happier driver.
Through word of mouth
Not only would surge pricing help with retaining taxi drivers and keeping them happy, but it would also increase the chances of attracting drivers to come and work for you. Why wouldn’t they want to come and work for a company where they can earn more money from doing the same amount of journeys?
Fostering a good company spirit is all about keeping your employees happy. Even though they won’t directly work together on their journeys, making them feel fairly treated and showing them that you have their happiness at the forefront of your mind will help you to continue to cast your net far and wide.
Learn more about how iCabbi automation software can keep your drivers happy. There are many benefits to iCabbi’s automation software and this is just one more to add to the list.