A new startup, Taxify, has revealed modifications to its pricing strategy with a view to improving services and changing the face of public transportation in Lagos State. As against the previous ₦360 base fare ₦81/km and ₦8 a minute, Taxify has lowered their rates to ₦200 base fare ₦55/km and ₦5.5 a minute. These rates, which the company claims are “the best rates to move you around in Lagos” are sure going to appeal to several more Lagosians who want to move around quickly without the stress of driving.
Similarly, the company has introduced “Dynamic Pricing” strategy. Under this strategy, more cars are available on the road meaning that more drivers are employed and existing drivers also get rewarded. For the customer, the dynamic pricing system will ensure that there is always a ride available for customers, no matter their number, while Estimated Time of Arrival will be a lot more accurate to enable passengers to arrive at their destinations on time.
Another advantage of the strategy is the ability of the customer to predict to a reasonable degree how much more they will need to pay and prevent the embarrassment of not having enough to pay for their trip. With these advantages, it should come as no surprise if the company becomes the preferred transport company for Lagos residents.
Taxify has been snapping up customers from Uber in recent weeks as more and more users flock to the ride sharing app due to its cheaper pricing and ease of use. This latest price reduction will likely support its efforts to snap up more customers from Uber.