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What pricing enhancements can we make to reduce driver rejections?

Asked at Uber
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Approach
  1. Clarifications
  2. Pain Points for Drivers
  3. Brainstorming pricing enhancements
  4. Summary
Clarifications

By pricing enhancements we mean the increase/ decrease in prices of rides which are shown to the driver, and ultimately credited to them.

Pain Points for Drivers

The 4 core entities drivers evaluate to decide wether to reject a cab or not:

  • Pick-up location
  • Drop off location
  • Rider
  • Fare/ Payment method

Let's get into the driver's seat and try to figure out why would a driver reject a ride:

  • Pick-up/ Drop off Location
    • Location is unserviceable/ unreachable.
    • Location is too far from their general service area.
    • Location is in an unsafe neighbourhood.
    • Chances of finding another rider around the drop location are low.
  • Rider
    • Rider rating is low and the driver feels uncomfortable.
    • Rider behaviour is questionable and driver feels uncomfortable.
  • Fare
    • Unfair fare.
    • Unpreferred payment method.
  • Other reasons
    • Driver is tired.
Brainstorming pricing enhancements
Cab aggregators can either increase the price, decrease it or keep it constant. Assuming they can't keep it constant, they can either increase the pricing in the driver's favour or decrease it against their favour.
 
Incentives/ Rewards
  • Incentivise drivers to accept rides from locations which are not in their usual service area by financially rewarding them.
  • Reward drivers for completing rides to demand scarce areas. 
  • Reward drivers for catering to quirky customers.
  • Increase the drivers cut.
  • Reward drivers for accepting payments.
  • Reward drivers for consistently accepting rides.
Penalties
  • Penalise drivers for rejecting too many rides.
Summary
  • To make rides feel more 'acceptable', cab aggregators should introduce incentives for drivers by rewarding the drivers for completing rides from unusual location, compromising their comfort with the rider and consistently accepting rides.
  • Alongside that, to make the rides feel less 'rejectable', cab aggreagators should penalise drivers for rejecting too many rides.
 
 
 
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