Bolt, the popular ride-hailing platform, has recently introduced a new pricing method for its drivers, providing them with more flexibility and control over their earnings. With this update, Bolt drivers can now choose between sticking with the default Bolt pricing or setting their own earning per distance.
What is Pricing Method
Before diving into the details, let’s understand what the pricing method entails. The pricing method refers to the approach you can take to determine your earnings as a Bolt driver. You have the choice to either go with Bolt’s predetermined prices, which consider dynamic factors such as demand, supply, and traffic, or set your own price per distance. By setting your own pricing, you have more control over your earnings and can adjust them based on your preferences and market conditions.
How to Choose Pricing Method
To select your preferred pricing method, you can access the option either through the Settings menu or directly on the home screen of the Bolt app. Once there, you will find the choice to opt for either Bolt pricing or your custom pricing. It’s important to note that Bolt pricing is automatically set for each ride category and is adjusted based on the demand for rides.
How to Set Up Your Pricing
When setting up your pricing, you have the opportunity to customize your distance rate within a provided range. The range includes a maximum value, which represents the highest possible price level in your location, and a minimum value, ensuring that your trips do not fall below a certain cost threshold. To optimize your earnings, it is recommended that you regularly adjust your pricing based on changing traffic conditions, ensuring that your earnings align with your expected level.
The distance rate you set up acts as the minimum rate used to calculate your fares. This means that you will not receive orders with a distance rate lower than what you’ve established, although it is possible to receive orders that are calculated with a higher distance rate.
Please be aware that you won’t be able to set up a minute rate. Instead, the minute rate and other predetermined fare components will be applied automatically to the final price, regardless of your pricing preferences. These fare components include the base fare (the fee for the pickup), the minimum price, paid wait time (if applicable), the ride duration (minute rate), and any additional fees such as cancellation fees, airport or toll fees, and booking fees.
When you set up your custom pricing, certain price components will remain unchanged and will be applied to the final fare, regardless of which method you choose. These elements are predefined based on the type of ride (bolt, comfort, exec, etc.) and include:
- Base Fare: This is the fee charged for the pickup and is a standard component of the fare calculation.
- Minimum Price: A minimum price ensures that even for shorter rides, you receive a fair compensation.
- Paid Wait Time (if applicable): If there is a wait time during the ride, such as when waiting for a passenger, you will be compensated accordingly.
- Minute Rate (Ride Duration): The duration of the ride contributes to the overall fare calculation, and a minute rate is applied to determine the earnings for the time spent on the trip.
- Additional Fees (if applicable): Certain situations may incur extra charges, such as cancellation fees, airport or toll fees, and booking fees. These fees are added to the final fare when applicable.
However, when you opt for your own custom pricing, dynamic pricing will not be factored into the final fare. Bolt’s dynamic pricing, which adjusts fares based on supply and demand, is not applicable when you set your own pricing. Your fares will remain consistent based on your chosen distance rate, regardless of demand fluctuations.
In cases where ongoing high demand leads to your custom pricing being lower than Bolt’s pricing, you will be automatically switched to Bolt pricing instead. This ensures that you continue to benefit from the advantages of dynamic pricing during peak periods.
Tips on Using Pricing Method
To make the most of the pricing method feature, here are a few tips to keep in mind:
- Regularly evaluate and adjust your pricing based on the prevailing traffic conditions in your area. This will help you maintain a balance between competitive pricing and reasonable earnings.
- Stay updated on Bolt’s default pricing for each ride category to ensure your rates remain competitive. If your custom pricing falls below Bolt pricing due to high demand, you will be automatically switched to Bolt pricing.
- Monitor your earnings regularly and assess the impact of your chosen pricing method. This will allow you to make informed decisions about whether to stick with your custom pricing or switch back to Bolt pricing.
- Determine how busy it is even without surge pricing and adjust your custom prices accordingly.
By following these tips and understanding the ins and outs of the pricing method, you can maximize your earnings as a Bolt driver while maintaining control over your pricing strategy.