How to resolve AdBlock issue? Bolt Introduces New Pricing Feature in Kumasi, Eliciting Mixed Reactions
Wednesday, 04 December 2024 | Ghana
Ride-hailing app Bolt has rolled out a new pricing regime for its operations in Kumasi, sparking mixed reactions among both drivers and passengers. The new feature allows customers to adjust the fare of a trip by topping up, reducing, or maintaining the original price when placing their orders.
This change comes in response to longstanding complaints from drivers who felt that the previous pricing structure negatively impacted their earnings. Under the old system, drivers often resorted to negotiating fare adjustments with passengers based on trip distance and duration. This led to frustrations for both parties, as passengers sometimes refused to pay the negotiated fare or canceled rides outright, creating tension between the two groups.
A driver, speaking anonymously to Luv Business, explained that the earlier pricing model was unsustainable for many drivers. He noted that after covering long distances and factoring in Bolt's 10% commission on each trip, their earnings were often insufficient. "Sometimes, we had no choice but to request passengers to do the trip offline, just to make enough to cover our expenses," he said.
The driver further highlighted that this issue was unique to Kumasi. In comparison, he noted that drivers in Accra benefited from a more consistent demand, which often resulted in higher fare surges. "In Kumasi, we only see significant price surges when it’s about to rain, which is not frequent enough to help us make a sustainable income," he added.
Bolt, in addressing the rationale behind the new pricing feature, clarified that it is currently exclusive to Kumasi. According to the company, the introduction of this flexible pricing system aims to address the unique economic dynamics of the city and provide a balance between passenger affordability and driver profitability.
However, passengers in Kumasi have expressed skepticism about the practicality of the new system. Regular users, such as Priscilla Serwaa, questioned its feasibility, describing it as neither logical nor beneficial from a passenger’s perspective. Many passengers are concerned that the new pricing model may lead to unpredictable fare adjustments, making it harder to budget for rides.
Drivers, on the other hand, are optimistic that the new pricing regime could improve their daily earnings and reduce the financial losses incurred under the old system. They believe that allowing customers to adjust fares upfront will reduce the need for awkward mid-trip negotiations and improve overall satisfaction for both parties.
Despite its intention to balance the needs of drivers and passengers, the new feature has sparked debate about its long-term effectiveness. Some users argue that Bolt’s efforts to create a localized solution for Kumasi's market challenges may pave the way for innovation in the ride-hailing industry. Others, however, see it as a potential source of further tension between passengers and drivers.
The success of this initiative will likely depend on how well Bolt communicates the benefits of the system and whether it truly addresses the economic concerns of its users in Kumasi. As the feature rolls out, it remains to be seen whether the adjustments will lead to a more sustainable business model for the ride-hailing app in the region.
This change comes in response to longstanding complaints from drivers who felt that the previous pricing structure negatively impacted their earnings. Under the old system, drivers often resorted to negotiating fare adjustments with passengers based on trip distance and duration. This led to frustrations for both parties, as passengers sometimes refused to pay the negotiated fare or canceled rides outright, creating tension between the two groups.
A driver, speaking anonymously to Luv Business, explained that the earlier pricing model was unsustainable for many drivers. He noted that after covering long distances and factoring in Bolt's 10% commission on each trip, their earnings were often insufficient. "Sometimes, we had no choice but to request passengers to do the trip offline, just to make enough to cover our expenses," he said.
The driver further highlighted that this issue was unique to Kumasi. In comparison, he noted that drivers in Accra benefited from a more consistent demand, which often resulted in higher fare surges. "In Kumasi, we only see significant price surges when it’s about to rain, which is not frequent enough to help us make a sustainable income," he added.
Bolt, in addressing the rationale behind the new pricing feature, clarified that it is currently exclusive to Kumasi. According to the company, the introduction of this flexible pricing system aims to address the unique economic dynamics of the city and provide a balance between passenger affordability and driver profitability.
However, passengers in Kumasi have expressed skepticism about the practicality of the new system. Regular users, such as Priscilla Serwaa, questioned its feasibility, describing it as neither logical nor beneficial from a passenger’s perspective. Many passengers are concerned that the new pricing model may lead to unpredictable fare adjustments, making it harder to budget for rides.
Drivers, on the other hand, are optimistic that the new pricing regime could improve their daily earnings and reduce the financial losses incurred under the old system. They believe that allowing customers to adjust fares upfront will reduce the need for awkward mid-trip negotiations and improve overall satisfaction for both parties.
Despite its intention to balance the needs of drivers and passengers, the new feature has sparked debate about its long-term effectiveness. Some users argue that Bolt’s efforts to create a localized solution for Kumasi's market challenges may pave the way for innovation in the ride-hailing industry. Others, however, see it as a potential source of further tension between passengers and drivers.
The success of this initiative will likely depend on how well Bolt communicates the benefits of the system and whether it truly addresses the economic concerns of its users in Kumasi. As the feature rolls out, it remains to be seen whether the adjustments will lead to a more sustainable business model for the ride-hailing app in the region.