Home Home Tech DiDi reduces fares by 10%, gives driver-partners more

Stating it is "shaking up the Australian rideshare market", Didi says its new "standard pricing in Melbourne" reduces fares by 10%, while lowering its services fee so driver-partners "earn 95% of fares".

Didi Chuxing, also known simply as DiDi, bills itself as "the world’s leading transportation platform which aims to make rideshare more affordable in Australia". It has announced what it says are "major changes to its standard pricing structure and services fee".

DiDi has introduced new pricing in Melbourne which reduces fares by 10%, "making every ride affordable as standard", with the proviso that this fare reduction is "Based on standard trips in Melbourne with no incentives applied and excluding tolls, levies and fees paid to third parties".

Rather than offering one-off promotions, the company says that riders can rely on it "to be the affordable choice as it will consistently offer rides at great prices".

We're then told that, in order to increase driver-partner earnings potential, "DiDi has simultaneously lowered its services fee from 20% to 5% (inclusive of GST) which will see driver-partners earn 95% of fares, "excluding tolls, levies and fees paid to third parties will go to the driver-partner".

Currently, Didi says "the industry standard ranges from 15% to 27.5%", and that the company "has made this change in collaboration with driver-partners, two thirds of whom voted in a recent survey for a flat 5% services fee over any other incentive".

The details here are that "DiDi conducted a survey of 1227 driver-partners, asking them to nominate their preferred incentive out of four options", with "61.6% having chosen a flat 5% services fee option".

DiDi says its "new pricing structure in Melbourne includes a price per minute rate of $0.30 and a price per km rate of $1.08 which drops to $0.98 after 7km.

"It also includes a base fare of $1.98 and the Victorian Government Levy for rideshare of $1.10. DiDi will not charge a booking fee", with all prices including GST.

An example given is of a "rider [who] takes a 33-minute 24km trip with DiDi from Melbourne’s Tullamarine Airport to Flinders Street in the CBD – the trip will now usually cost approximately $37.20 (excluding all tolls, levies and fees paid to third parties) and see the driver-partner earn approximately $34.47 after a 5% services fee.

"Under DiDi’s previous pricing structure, the same trip would have cost approximately $43.25 while the driver-partner would earn $32.92.

"A 27-minute 15km trip from Melbourne’s CBD to Chadstone Shopping Centre will cost approximately $26.58 for riders compared to $30.80 under the previous structure (excluding all tolls, levies and fees paid to third parties) and will see drivers earn approximately $24.36 compared to $22.96."

We're reminded that "Prices are inclusive of GST and do not take into account any offers or rewards that may be available to a particular consumer at a particular time. The rider charges stated for the trips do not include any applicable tolls, levies and fees paid to third parties."

Abigail Holman, DiDi’s state manager for Victoria, said that with the new pricing structure and services fee, DiDi is reinforcing its commitment to riders and driver-partners in Melbourne.

“When we launched in Melbourne earlier this year, we did so with a clear goal, to make rideshare more affordable while providing driver-partners with opportunities to increase their earnings. Australia is one of the most expensive places to rideshare in the world; but unfortunately, while riders have been paying, driver-partners have not seen this reflected in their earnings," she said.

“After listening to feedback from our riders and driver-partners, we’re making a bold move to provide everyday value for riders while simultaneously increasing driver-partners’ earnings potential with a services fee that sees them earn 95% of fares."

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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

 

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