New pricing structure
Drive mate is updating its pricing structure effective 1st Mar’23. This update is being made to improve conversions from guests searching for a car by showing the fees in a different way.
Secondly, total trip prices will increase across the board by 10-12% to accommodate for rising insurance and platform fees. The purpose of this announcement is to explain to car owners the reasons behind this change.
What’s Changing:
Instead of showing the daily rate set by hosts and the platform fees on top of that, we will show a higher daily price and reduced platform fees. This effectively means that we will introduce a 25% commission on the daily price charged by the host, and show a fixed $12/day platform fee to the guest. The additional platform fees are required to cover for increased insurance and platform costs. Hosts will continue to earn the same amount per day as the current daily rate.
For guests trip prices will increase by around 10-12%. This means we will remain competitive vs other car sharing and car rental players.
Drive mate will auto update host's daily price on the platform to reflect the 25% commission, so there is no action required from you.
What’s Not Changing:
Drive mate assures that the daily host earnings will remain the same, as the daily price will be auto-updated in the system to accommodate the 25% commission. Hosts can continue to earn the same amount, while Drive mate covers the additional insurance and platform costs.
Why the Price Structure is Changing:
The primary reason behind this update is to improve booking conversions and thus increased revenue for the host community. Over the last couple of months we have conducted a study on booking ratios using different pricing structures and found that the one we are introducing now results in the highest number of bookings.
Secondly, the overall increased platform fees are needed to cover for the higher insurance and platform running costs. Drive mate is committed to ensuring the safety of its guests and hosts, and adequate insurance coverage is a critical aspect of that commitment. Additionally, Drive mate has invested in enhancing its platform to provide a seamless experience for its users. These improvements come at a cost, which is reflected in the platform fees. Still, Drive mate remains competitive on its pricing and fees after March 1st 2023 for both hosts and guests.
Drive mate values its community of hosts and guests and is committed to providing a transparent and fair pricing structure. The updated pricing structure will enable Drive mate to continue offering a reliable, safe and user-friendly platform for its users. We appreciate the understanding and cooperation of our valued community during this transition.
If you have any questions, please feel free to reach out to us.