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Sasa Ride - Pricing Strategy Research

Research on appropriate pricing models for Sasa Ride ride-hailing platform.

Research Objective​

Determine optimal pricing strategy for Sasa Ride by analyzing successful ride-hailing pricing models, particularly Bolt's approach, to establish competitive and sustainable pricing for customers.

Bolt Pricing Model Analysis​

Core Pricing Components​

  • Base Fare: Minimum charge for every trip
  • Time Fare: Charge based on ride duration (per minute)
  • Distance Fare: Calculated per kilometer traveled
  • Additional Fees: Airport charges, tolls, etc.

Commission Structure​

  • Bolt Commission: 15-20% (vs Uber's 25%)
  • Driver Earnings: 80-85% per ride
  • Regional Variations: Some markets capped at 18% (e.g., Kenya)

Surge Pricing Mechanism​

  • Trigger Factors: High demand, rush hours, bad weather, low driver availability
  • Surge Range: Typically 1.5x-2x (lower than Uber's surge rates)
  • Dynamic Pricing: Algorithm-based with recent introduction of passenger bidding system
  • 2024 Innovation: Passengers can offer higher fares to increase ride acceptance probability

Key Insights for Sasa Ride​

  • Competitive Commission: Lower commission rates attract more drivers
  • Balanced Surge: Moderate surge pricing maintains customer satisfaction while incentivizing drivers
  • Loyalty Programs: Targeted discounts for regular customers
  • Driver Incentives: Weekly bonuses for performance (30+ rides, low cancellation rates)

1. Commission Structure​

  • Target 15-18% commission (competitive with Bolt)
  • Higher driver retention through better earnings
  • Consider local market regulations

2. Surge Pricing Strategy​

  • Implement moderate surge (1.5x-2x maximum)
  • Clear communication to customers about surge reasons
  • Consider passenger bidding for high-demand periods

3. Base Pricing Model​

  • Base fare: Fixed minimum charge
  • Time rate: Per-minute charge during trip
  • Distance rate: Per-kilometer rate
  • Service fee: Platform maintenance fee

Next Steps​

  1. Analyze local market transportation costs
  2. Survey target customers for price sensitivity
  3. Test pricing models in pilot markets
  4. Monitor competitor pricing changes
  5. Develop dynamic pricing algorithm

Resources​

  • Bolt Analysis: Bolt Pricing Explained
  • Market Research: Local transportation pricing data
  • Competitor Analysis: Uber, local ride-hailing services