## What is the duration of the trip and how are the charges calculated?

At Drive mate, you can either rent by the hour or day. Minimum rental duration is 1 hour. Your trip can start and end at any time you and your host agree on; however, the smallest unit we’ll charge is one hour.

**Trip cost calculation**

A trip’s total cost is made up of these elements:

Trip Price: This is a vehicle’s listed rate multiplied by the trip length. Each host sets their own standard daily rate.

Trip Fee: The trip fees varies depending upon the age of the driver and the trip price.

Processing Fee: a 2.5% processing fee is charged to cover for payment provider costs.

Overall, total trip cost is generally 30-40% cheaper compared to traditional rental companies.

**Example A: **

Host decides the rental price of his car at $80 per day. A guest, aged 30 years wants to rent the car for a day. The breakup of the trip cost would be as follows:

Daily Total trip cost: $100

Daily Trip price: $80

Daily Trip fees: $20

Processing fees (2.5%): $2.5

Total: $102.5

The guest pays $102.5, the host receives $80 and Drive mate receives $20. Payment provider receives $2.5. (for 24 hours rental)

**Example B: **

Host decides the rental price of his car at $80 per day. The guest aged 23 years wants to rent the car. He needs to pay a young driver fee due to higher insurance cost. The breakup of the trip cost would be as follows:

Daily Total trip cost: $108

Daily Trip Price: $80

Daily Trip fees: $28

Processing fees: $2.7

Total: $110.7

The guest pays $110.7, the host receives $80, Drive mate receives $28 and payment provider receives $2.7.

**Example C: **

Host decides the rental price of his car at $55 per day. A guest aged 26 years wants to rent the car. The breakup of the trip cost would be as follows:

Daily Trip Price: $55

Daily Trip fees: $15

Processing fees: $1.75

Total: $71.75

The guest pays $71.75, the host receives $55, Drive mate receives $15 and payment provider receives $1.75.