PickMe reduces fares by 6% to Rs.33 per km
View(s):PickMe, calling it a strategic move to bring greater benefits for drivers and patrons, has reduced its three-wheeler fares to Rs.33 per km, from a previous fare of Rs.35 per km.
The decision was made following a comprehensive study done on the trip patterns of local tuk-tuk (three-wheelers) passengers which brought to light the reason for most taxi-riding grievances of both driver and passenger, the company said in a media release.
While some passengers needed to get from A to B as soon as possible, others used taxis for more accommodating needs such as to get their shopping done or for sightseeing. Taxi drivers, especially those who felt they had a good chance of being hired more often than not, felt that they were losing an opportunity-cost when they were hired for the latter purpose. This is the problem PickMe aims to solve by their new price revision, it said.
“When calculating the new fare, we also considered a driver’s opportunity cost -that is the potential amount a driver could earn while he spends his time on a ride than staying idle – and on this account we increased the ‘waiting time’ fare from Rs.2 per km to Rs.3.50 per km so that a driver would be fairly compensated for the time spent waiting for a passenger while on a hire” said Jiffry Zulfer, Chief Executive Officer of PickMe. “While on the other hand, we wanted passengers who just wanted to get from A to B, to benefit from a more economical fare since these passengers are usually the regular tuk-tuk goers and would certainly enjoy the reduction on their monthly travel costs”