This story is from November 08, 2016
Cab cos add features but surge continues to sting
CHENNAI: In a competitive market, cab aggregators continue to vie with one another to add more features but are yet to address the issues associated with dynamic pricing, to the chagrin of customers who fee they are being taken for a ride.
Variable pricing that can push a ride costing 150 to 200 or more, depending on demand, remains a sore point. In the past few months itself, the offers by big players have multiplied. With a large fleet of cars, from hatchbacks to SUVs, they’ve been upping features and customizable options on apps to woo passengers with ride-based discounts and redeemable codes. Last week, Uber’s redesigned app rolled out features like people-search option and scheduler integration.
But at the heart of cab aggregators’ pricing remains fluctuation of rates and the lack of clarity on it, drawing flak from users. With the dreaded peak hour pricing in place, billing becomes vague for even seasoned passengers. Ashwathy B, a regular user, says
While the Ola app doesn’t display rate, another player masks any indication of peak hour price, even when charges apply. Ramaraja R, who uses Uber GO, says ‘upfront rate’ confuses passengers not conversant with routes. “I may know my ride cost beforehand, but I’ll never know how much it has been hiked,” he says. An Uber spokesperson said passengers always knew how much they would be charged and could make informed choices even during a demand-triggered hike. “If they find the price too high, they can choose not to ride.”
Offers overriding surge have also failed to reassure passengers. Ola’s paid membership comes with many offers sedan (prime) at the cost of a hatchback (mini), free wi-fi, high-rated cars, etc. But thse too have met with complaints ranging from no wifi to sub-par service. Others like Chennai-based UTOO cabs promise zero surge pricing and more luxurious car options, but still don’t beat the cost curve. .
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But at the heart of cab aggregators’ pricing remains fluctuation of rates and the lack of clarity on it, drawing flak from users. With the dreaded peak hour pricing in place, billing becomes vague for even seasoned passengers. Ashwathy B, a regular user, says
surge
pricing appears on her Ola app in multiples like 1.6 or 2.4 and changes in seconds.While the Ola app doesn’t display rate, another player masks any indication of peak hour price, even when charges apply. Ramaraja R, who uses Uber GO, says ‘upfront rate’ confuses passengers not conversant with routes. “I may know my ride cost beforehand, but I’ll never know how much it has been hiked,” he says. An Uber spokesperson said passengers always knew how much they would be charged and could make informed choices even during a demand-triggered hike. “If they find the price too high, they can choose not to ride.”
Offers overriding surge have also failed to reassure passengers. Ola’s paid membership comes with many offers sedan (prime) at the cost of a hatchback (mini), free wi-fi, high-rated cars, etc. But thse too have met with complaints ranging from no wifi to sub-par service. Others like Chennai-based UTOO cabs promise zero surge pricing and more luxurious car options, but still don’t beat the cost curve. .
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