Taxi Driver Online

Bold move to take on Uber: Bolt to allow London drivers to set their own prices

https://www.cityam.com/bold-move-to-tak ... wn-prices/

In an attempt to tackle driver shortages which have led to longer wait times and increased cancellations across the ride-hailing sector, Uber’s main rival in the capital, Bolt, said this morning it will allow drivers to set their own prices.

Drivers often accept journey requests but then reject them after receiving more profitable options, Bolt explained. This leads to a “poor experience for customers”, the Estonian start-up said.

The ability for drivers to choose their own prices will be tested in several UK cities from this week ahead of a planned rollout across the country before Christmas.

Drivers will be able to select their prices within a range, or use Bolt’s standard pricing which varies based on supply and demand. A feature allowing passengers to select their driver from a list is also being introduced.

Sam Raciti, Bolt’s manager for western Europe, said: “Drivers have consistently asked us for the ability to set their own prices so they can ensure a journey is profitable enough before it’s accepted.

“By making these changes we hope to reduce waiting times on the Bolt app and have fewer driver cancellations so customers can get to their destination quickly and safely following increased demand in recent weeks.

“We have built our business around giving drivers total flexibility.

“These changes are part of that philosophy and will create a better functioning marketplace.”

Bolt said it has “grown rapidly” in the UK since launching in London in 2019, due to having commission rates which are lower than those charged by other companies.

It added that it has more than 65,000 drivers and four million customers across 14 English cities.

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IDFIMH

I thought that it was only an operator who could set the price not the driver unless the driver also has an operators license?

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Grandad,

Agree.

But the driver tells the operator what rates he wishes to charge, and those rates are reflected in the advertised fares on the app.

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IDFIMH

Still think it has to be an operator. I don't think the driver can, or should set the price.

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Grandad,

How would a person be able to compare prices of all drivers on that app to obtain the cheapest , which is what private hire operator competition is all about.

Does the legislation state that the operator should set the fares, or is it just about making provision to accept bookings, or whatever?

Anyway, my immediate thought as regards the legals is that this may be intended to head off the challenges regarding worker status, because of course fare-setting was a big factor in the Uber case. So it maybe both intended to address the issue of cancellations etc, and to help address the self-employment issue.

But, in practical terms, not enough information to assess how it will all work. Bolt could turn into one of those price-comparison apps, in effect.

But not sure how it'll work in practice - drivers bidding each other down, or passengers facing a price-hiking frenzy?

It's maybe a bit like Uber and the Autocab thing - very difficult to assess the ramifications in terms of pricing etc unless you know precisely how the apps work and how things will be shown to drivers and customers etc.

But certainly a significant development in principle, particularly if others follow suit, and it becomes the norm

Would you still shop at your favourite supermarket IF every branch had different prices set by the shop staff ?


Not very well thought through

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

In the same way app pricing works now.

Customers will have a choice of options to pick from. They currently have options for saloons, exec saloons, and multi-seaters.

I suspect Bolt will just adjust their options to include wait timings for vehicles. Say £10 for a 20-minute wait and £15 for a 5-minute wait.

All makes complete sense to me.

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IDFIMH

What on earth do you think surge pricing is?

And that's changing, like it or not, the PH trade nationally.

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IDFIMH

I think it's a moot point, PH operators can charge what they like, and they can allow any driver to set their own rates that the operator can advertise on their behalf.

In all fairness, it's quite rare for that to happen, but happen it can.

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IDFIMH

Isn't that in direct contradiction of the recent court cases that says that the drivers are not self employed but are workers under the direction of a company?

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Grandad,

Not sure if the licensing dimension was in itself a factor in the Supreme Court's decision.

It was more about the ability to set fares, and to that extent whether drivers are in effect running their own business.

Which may be linked to licensing law, but that's a different issue to whether the driver is regarded as self-employed.

But there are various factors involved, and fare-setting is only one factor. It's all about the degree of control and subordination etc, of which fare-setting is only one factor, and not necessarily the decisive one.

Which is why, I suspect, Bolt intends allowing drivers to set their own fares - it helps fend off the argument that Bolt's drivers aren't self-employed.

And why, perhaps, quite apart from the strike, Veezu won't want their fare-setting dirty laundry washed in public.

But, as regards the issue of self-employment, who sets the fares is only one of the factors that should be taken into account. So even if Bolt allows drivers to set their own fares, it won't automatically follow that drivers are self-employed, although it's obviously one important argument against 'worker' status.