Ingogo takes on Uber with fixed fares for taxi rides
The taxi-booking app is emulating Uber with fixed-price fares.
Australian taxi payment app Ingogo is switching its model from the traditional meter-calculated fare to fixed fare pricing.
This means, from next week, when you're booking a taxi through the Ingogo app or website, you will be shown the exact cost of the trip, including tolls and charges.
The fixed fare is determined by the distance and expected travel time via the most efficient route. Uber has adopted a similar tactic, which has been one factor in the service's growing popularity.
Unlike the Uber approach, there is no surge pricing for periods of high demand.
"Customers are at times uncomfortable with taxis, some hire cars and rideshares for a number of reasons," Ingogo's chief marketing officer, Jeff Lim said.
"They're not sure of the final price before they get in, or are concerned that a driver will take a less-than-optimal route to get the passenger to their destination.
"Through the new Ingogo app, customers will have the certainty that they crave around pricing. Legislation expected in NSW will require an estimate when booking, but Ingogo is now taking that to the next level. Plus passengers can jump straight out of the cab as payment and receipts are automated." Payment is through the credit card you register with the app.
Taxis are finding Uber to be stiff competition. A recent Deloitte Access Economics report found ridesharing service uberX to be almost 20% cheaper than equivalent taxi fares. This is true even when surge pricing is taken into account. Uber is also expanding its reach, including a recently added option to pick up passengers from Sydney Airport.
In an analysis by finder.com.au in December 2015, savings were found to be in the 30-40% range for some uberX trips when compared to hailing a taxi.