Skip to main content
All CollectionsMoovs Software
Understanding Pricing in the Moovs App
Understanding Pricing in the Moovs App

How do we calculate your trip price?

Amir Ghorbani avatar
Written by Amir Ghorbani
Updated over a week ago

This article outlines Moovs calculates pricing based on all the available options and settings.

Overall calculation

Types of Trips

  1. Transfer Trips (One way and Round trips)

  2. Hourly Trips

Transfer Trips

For transfer trips, the pricing calculation follows these steps:

  1. Zone Pricing Check: The system checks if the pick-up and drop-off locations fall within predefined Zone Pricing areas or routes. If it does, then the zone/route price is used and the steps below are skipped.

  2. Deadhead Rate Calculation: If a deadhead rate per mile is configured, the system calculates the total deadhead rate (deadhead rate per mile * trip millage).

  3. Tiered Pricing Check: Next, the system checks if tiered pricing is enabled for transfer trips.

    • If tiered pricing is not enabled for transfer trips, the calculated trip price (deadhead rate + (price per mile x trip millage)) is then compared to the minimum total base rate.

      • If the trip price is lower, the system disregards the calculated price and instead applies the minimum base rate.

    • If tiered pricing is enabled, the Base Rate is calculated based on the mileage brackets and then added to the Deadhead Rate. There are two options to calculate the base rate in tiered pricing:

      • Incremental: Calculates the price by applying each tier's rate to the corresponding segment of the trip.

        • Example
          Let's say this is how your tiers are configured:

          Then, a 120-mile trip would be calculated as follows:

          First 50 miles are $200 flat = $200
          Next 50 miles * $4/mile = $200
          Last 20 miles * $1/mile = $20
          Total base rate = $200 + $200 + $20 = $420

      • Fixed tier: Checks which tier the entire trip mileage matches with and determines the price using that rate for the entire distance.

        • Example
          Let's say this is how your tiers are configured:

          Then, a 120-mile trip would correspond to the third tier (100-150 miles), so the calculation would be as follows:
          120 miles * $2/mile = $240
          Total base rate = $240

  4. Final Price Adjustment: Finally, any applicable dynamic pricing rules are applied, and the adjusted price is finalized.


Hourly Trips

The pricing for hourly trips follows an analogous workflow to transfer trips, with the main difference being the basis for pricing calculation, which revolves around the hourly rate in weekdays/weekends instead of mileage, and zone pricing not being considered for the calculation.

  1. Deadhead Duration Calculation: If the deadhead duration is not zero, the system calculates the trip duration adding:

    # of hours reserved for the trip

    + time from garage to pick up

    + time from drop off to garage

    - total deadhead duration configured for the vehicle

    ________________________

    Total trip duration

    Note: You can read the total deadhead duration that you configure for hourly trips in your vehicle as: How many deadhead hours do you offer for free until you start charging the customer?

    So, if you choose 0 hours that means that any deadhead for trips will be fully covered by the customer. On the other hand, if you choose No deadhead it means that there won't be any charges related to deadhead to the customer.

    Example:

    • Let's say your configured hourly deadhead for an Executive Sedan is 2 hours and your garage is in MacArthur Park, LA.

    • Then, a customer requests a trip from Modesto, California to Sequoia National Park.

    • The total deadhead for the trip will be calculated as follows:

      • The distance from garage to pick up: 4 hours

      • Plus the distance from drop off back to the garage: 3.5 hours

      • Minus the deadhead covered for free by you (2 hours)

      • Total deadhead duration is 4 + 3.5 - 2 = 5.5 hours

  2. Tiered Pricing Check: Next, the system checks if tiered pricing is enabled for weekday/weekend hourly trips.

    • If tiered pricing is off, the total trip duration is then compared to the Weekday/Weekend Hourly Minimum

      • If the total trip duration (deadhead + trip length) is lower than the minimum, the Hourly Minimum is then used as the total trip duration.

      • Next, the Total Trip Duration is multiplied by the Weekday/Weekend Hourly Rate to get the Deadhead Rate for the trip.

    • If tiered pricing is enabled, the Deadhead Duration is multiplied by the deadhead hourly rate to get the Deadhead Rate. The Base Rate is then calculated based on the hourly brackets and then added to the Deadhead Rate. There are two options to calculate the base rate in tiered pricing:

      • Incremental: Calculates the price by applying each tier's rate to the corresponding segment of the trip.

        • Example
          Let's say this is how your tiers are configured:

          Then, a 7 hour trip would be calculated as follows:

          First 2 hours are $200 flat = $200
          Next 2 hours * $100/hour = $200
          Last 3 hours * $50/hour = $150
          Total base rate = $200 + $200 + $150 = $550

      • Fixed tier: Checks which tier the entire trip duration matches with and determines the price using that rate for the entire length.

        • Example
          Let's say this is how your tiers are configured:

          Then, a 7 hour trip would correspond to the third tier (4+ hours), so the calculation would be as follows:
          7 hours * $100/hour = $700
          Total base rate = $700

  3. Final Price Adjustment: The final hourly rate is adjusted for any dynamic pricing rules that might be applicable, such as peak times or special events configured.


Video Tutorials

If you prefer a video explanation on how to configure pricing for your business, you can find them below:

Vehicle pricing

Dynamic pricing

Moovs Training - Dynamic Pricing

Zone Based Pricing

Moovs Training - Zone Based Pricing
Did this answer your question?