Recent advances in electronics and internet technologies have had major impacts on ridesharing market, but for all of its extraordinary growth, ridesharing is still far from ubiquitous. To boost miles traveled, the industry will need new solutions, including smarter design and innovative technologies. While more and more of the customers are being served by the industry, the growth ceiling for this current ridesharing model —is relatively fixed.
The restrictions imposed by consumer- industry watchers have made Uber-Grab deal face uphill battles, wanting them to retain their pre-transaction pricing and product options for riders and drivers.
Thus to mark a milestone moment in its growth, Jugnoo analyzed the issues currently being faced in the ride-hailing market and forayed in Singapore market with the reverse bidding ride-hailing system. This will be opposite of how Grab and Uber work. It will be rolling out a reverse-bidding pricing system from May 1 which will be beneficial to both the riders and the drivers.
How will it work?
Jugnoo will enable freelance drivers with a commercial driving license to bid for commuter requests.When a rider makes a booking, drivers will be able to bid for the ride: Alternatively, they can also offer an amount of their choosing. Riders will then have the ability to choose between bids offered by drivers, depending on the driver’s rating, bid price and how long they will have to wait for the ride. For first six months, Jugnoo is free to start with but after six months, Jugnoo will operate on a commission-based revenue model by charging a 10 percent commission on the ticket size from the drivers and a convenience charge from its customers.
Nowadays, reverse pricing as a special form of dynamic pricing has become an increasing concern for many businesses. Reverse bidding, a proven business model in advanced economies, has geared up and the number of businesses has sprouted to tap into opportunities in a range of sectors. It gives potential customers an active role. It is a mechanism through which, interested parties bid a price down from an amount set by the buyers and then those with the best price are selected through electronic biddings towards the lowest. This guarantees a fair and transparent competition.
With the reverse bidding model, Jugnoo aims to optimally leverage the already available large pool of taxi owners. Its expansion in the Singapore ride-hailing market will scale up the growth of many stakeholders.
If you enjoyed reading this, we’re sure you will also love checking out what we have in store on our Youtube channel. You can also head to our home page for more info!
Subscribe to our newsletter
'Jungleworks Entrepreneur's Den' to get access to the latest industry & product insights.