QUESTION 15

TAXI TRAKER
 Discuss the benefits of TT’s dynamic
demand-based pricing model
and comment on whether it is unfair to TT’s
customers
BACKGROU
ND • Try to change the taxi marke t in a ma jor capita l
city
• Market consists of city taxis a nd PHV

• Launched a ‘driver for hire’ application

• Customers can use the a pp for booking PHV

• Faced intense opposition from Citic ab drivers

• Unlice nsed city taxi service
 DYNAMIC
DEMAND-BASED
PRICING
• Higher demand, higher fare
• Encourage more PHV drivers to fulfill the
customer needs
• Example: Raining, peak hours

• Angry responses on social media

• Unfair to TT’s customers
 BENEFITS

• Increase revenue
• Willing to work during • Rebalance the market
• Meet several customers’ need
specific period • Remain competitive
advantage

CUSTOMERS DRIVERS MARKET

IS IT
UNFAIR ??
NOT NECESSARY
• Ensure the balance between supply and demand
• Take account into the needs of drivers and
passengers
THANK YOU