Title: Resolving Fare Transparency Concerns at Ridehailing Co.

: A Strategic Product Management

Approach

Introduction

In the rapidly evolving landscape of urban mobility, Ridehailing Co. has emerged as a beacon of
innovation, dedicated to providing affordable and sustainable transportation solutions. However,
recent customer feedback has illuminated a critical issue that threatens to undermine the company’s
reputation: significant discrepancies between estimated and actual fares. As Achyuta, a committed
product manager at Ridehailing Co., I am confronted with the challenge of addressing growing
customer dissatisfaction while maintaining the integrity and values upon which our company was
built.

Understanding the Situation

Ridehailing Co. is facing a mounting wave of customer dissatisfaction stemming from unpredictable
and frequently higher ride fares than initially quoted by our dynamic pricing algorithm. This issue
strikes at the core of our mission, jeopardizing our promise of affordability and transparency. The
urgency to find a solution is compounded by the necessity to uphold our commitment to sustainable
urban transport and regain our customers' trust.

Identifying the Customer

Our primary customer segment comprises environmentally conscious and budget-oriented

individuals seeking reliable, cost-effective transportation options in metropolitan areas. Additionally,
we cater to a secondary segment of occasional users who prioritize the convenience of ride-hailing
services despite having access to other transportation means.

Recognizing the Problem

The crux of the dissatisfaction lies in three major customer pain points:

1. A glaring lack of fare transparency and predictability, leaving customers feeling blindsided by
the final charges.

2. Customers experience a sense of betrayal due to unexpected fare increases post-ride,

eroding trust in our service.

3. The inconsistency between estimated and actual fares raises concerns about our pricing
integrity and fairness.

C: Comprehend the Situation

Brief Overview: Ridehailing Co. is facing significant backlash from customers over
unpredictable and often higher ride fares compared to the initial estimates provided by its
dynamic pricing algorithm.
Objective: Enhance the customer experience by improving fare predictability and
transparency, aligning Ridehailing Co.'s core values of affordability and sustainability with
customer satisfaction.
I: Identify the Customer
 Primary Segment: Budget-conscious and environmentally aware individuals seeking
reliable and economical transportation options in metropolitan areas.
  Secondary Segment: Occasional users who prefer ride-hailing services for
convenience despite other available options.
R: Recognize the Problem
 Customer Pain Points:
o Lack of fare transparency and predictability.
o Feeling cheated due to unexpected fare increases post-ride.
o Discrepancies between estimated and actual fares contribute to trust issues.
C: Communicate the Solution
Feature Proposal: "Transparent Fare Tracker" - A dual-component solution designed to
empower customers with real-time fare visibility and control.
1. Pre-Ride Fare Breakdown: An upfront detailed explanation of the fare estimate,
including all components like base fare, estimated traffic, dynamic surge, anticipated
route, and conditions that could change the fare.
2. Ride Progress Fare Updates: Real-time notifications for any anticipated changes in
the fare due to route alterations, traffic conditions, or any other reason, with an option
to confirm or reject the fare update during the trip.
L: Lay Out the Product Specs
 Upfront Transparency: Before ride acceptance, display a fare estimation logic that
includes the dynamic factors likely to influence fare changes.
 In-Ride Notifications: Implement push notifications and in-app pop-ups to alert users
about fare adjustments, offering a brief rationale for the change.
 User Choice Empowerment: Allow users to make informed decisions during their
ride if significant fare changes are anticipated.
E: Evaluate Trade-offs
 Pros:
o Builds customer trust through transparency.
o Potentially reduces complaint rates related to fare discrepancies.
o Enhanced customer experience could improve NPS and CRR.
 Cons:
o Technical complexity in implementing real-time notifications and dynamic
fare recalculations.
o Potential reduction in spontaneous ride bookings due to increased fare
awareness.
o
S: Summarize and Recommend
To address the pressing concerns of Ridehailing Co.'s fare discrepancies, the "Transparent
Fare Tracker" feature will significantly enhance fare transparency and predictability. This
initiative is expected not only to mitigate the negative impact on NPS and CRR by addressing
the core customer concerns of trust and fairness but also to reinforce Ridehailing Co.'s market
positioning as an ethical and customer-centric brand.
By focusing on communication and empowerment, Ridehailing Co. can turn a point of
contention into a competitive advantage, fostering higher levels of customer satisfaction and
loyalty.
Execution Plan
 Weeks 1-4: Prototype development and user testing for feedback on the Transparent
Fare Tracker feature.
 Weeks 5-6: Integration of customer feedback and adjustment of the feature.
 Week 7: Internal beta testing and preparation for a phased rollout.
 Week 8: Initial rollout in a controlled market segment with continuous monitoring
and customer feedback collection for further improvements.
This strategic approach concentrates on aligning product development with customer needs,
ensuring Ridehailing Co. effectively tackles its fare discrepancy challenge while enhancing
overall customer satisfaction.