inDrive denies abandoning bidding model, introduces option to skip negotiations

Taxi-hailing app inDrive has debunked claims that it had abandoned its price-bidding model. In a chat with Technext, a company spokesperson said its bidding model hadn’t changed, noting that it only introduced a new “One Click” option that gives riders the opportunity to skip bidding if they are in a hurry.

“Our model is the same. We didn’t change overnight. We just introduced the One Click option, which lets you skip bidding if you are in a hurry. You can still click on Ride to negotiate your fare and agree on a price with your driver. The same applies to Comfort, where you can also negotiate and get newer car models. The main thing you need to know is that you now get the best of both worlds,” the company said.

inDrive also explained that users can negotiate on Ride and Comfort, or tap One Click to skip the negotiation. The company also clarified that it quietly introduced the One Click option so that riders in a hurry can eliminate the time-wasting bidding process.

Users on social media noticed changes in the app, especially as the usually bold option for riders requesting basic rides to set their own fares is no longer available. Previously, the app recommended a fare but provided a section for riders to increase or reduce the fare, essentially making their own offer.

This offer is displayed to every driver within the vicinity of the rider for them to either accept or make a counteroffer. The rider would then see the counteroffers made by the drivers, as well as the ones who accepted their fares and choose from the options.

Read also: inDrive pledges long-term commitment to Nigeria after Uber’s exit

Issues around inDrive’s model

Following Uber’s exit from the Nigerian market, inDrive declared its long-term commitment to the country.

The company was particularly confident in its bidding model, stating that it was the main reason why it could compete and operate effectively in emerging markets. It noted that its model revolved around affordability, which is an important consideration for consumers in markets like Nigeria.

Going further, the company explained that under its model, the final fare is determined directly between the driver and the passenger. This model, it says, gives both parties greater control and enables them to agree on a price that works for them.

“Unlike traditional ride-hailing platforms, we do not use algorithms to set ride prices,” the company said.

But the company might just be doing exactly that with the introduction of One Click. This option eliminates bidding and only lets inDrive set the price. It is also a smart option seeing that the fares on One Click are roughly about 40 to 50 per cent higher than the recommended fares on the basic ride category. Thus, it falls well within the range any bidding would eventually end in, if not higher.

For a while, the company's model has benefited riders who found its services quite affordable, to the detriment of drivers who believe the model has caused their services to be undervalued.

Under the present harsh economic realities, when the cost of operating their vehicles has skyrocketed, drivers are increasingly becoming unhappy with the app. Therefore, inDrive’s introduction of One Click might be the company’s way of combining the so-called “traditional ride-hailing” model with its own, to help drivers earn more without subjecting them to the whims of riders who tend to bid below acceptable fares.

If it succeeds, it will help the company retain many disgruntled drivers. But it is very unlikely that that success would lead to the eventual discarding of its bidding model.