What is flexible pricing?
At Planabout we like to be clear about everything we do and that is why our transportation department has fixed rates, with the only exception being if it is day or night. Companies such as Cabify or Uber have flexible pricing, which are roughly rates that vary depending on supply and demand.
"Surge pricing" is the English term used in the profession to refer to this system. It could be translated as "flexible pricing." The truth is that it is nothing new. In Spain, too, Uber has been using it since it arrived. However, the users of Cabify have been caught off guard by it, and it has been making a lot of work for the company's "community manager."
"An algorithm calculates everything"
The increases reported in fares range from four or eight euros to twenty (as can be seen above for a 12-kilometer ride). Why these differences? When consulting the criteria used to determine the amount of these fares, the company merely indicated that it “depends on an algorithm” that takes into account, primarily, demand and cars available at the time. They do not provide any more details. The company does not publicize the criteria that regulates the rise in fares in times of high demand. The truth is that the whole issue of flexible pricing has been used by taxi drivers as a weapon, especially against Uber. The platform has always been defended saying it offered an estimate before getting the vehicle, something that changed a few weeks ago as it had been offering a fixed price since last September. In addition, those responsible for the US firm also argue that the taxi fares are flexible in order to "differentiate on nights and weekends" when rates are higher. The issue is that this latest price change has caused many doubts on which service, Uber or Cabify, is cheaper or if you have to forget about these platforms and make use of local taxi dispatchers. We have reviewed the price tables in order to clarify this
New Cabify Fares
| Distance | Price |
| 0 - 2 KM | 2 euros / KM |
| 2 - 20 KM | 1,7 euros / KM |
| 20 - 80 KM | 1,25 euros / KM |
| Above 80 KM | 1,05 euros / KM |
- Minimum fare 5,5 euros. Outlying districts 12 euros. Departure from the airport 15 euros.
- Time per minute There is no cost per minute (Waiting 0,45 euros)
- Uber: cheapest km, minute at 0,10€
Uber Fares (updated in September)
| Item | Price |
| Price per kilometer | 1,25 euros per kilometro |
| Price per minute | 0,10 per minute |
| Minimum fare | 5,5 euros |
Taxi: fares
Since every taxi association in each city has its own "little book" of fares, we've used the rates in the city of Valencia as a reference. As you well know, there are other items such as minimum fare, if it is at night, on the weekend or from the starting point.
Taxi fare (L-V. 7:00am - 9:00pm)
|
Item |
Price |
|
Start of service |
1,45 euros |
|
Price per kilometer |
1,08 euros |
|
Price per hour |
19,15 euros |
Taxi fare (L-V. [9:00pm - 7:00am], weekends and holidays)
|
Item |
Price |
|
Start of service |
2,00 euros |
|
Price per kilometer |
1,18 euros |
|
Price per hour |
22,45 euros |
Other supplements:
-
Airport 5,40 euros
-
Port area and Trade Fair 2,95 euros
Uber, Cabify or taxi: Which is the cheapest?
If there is a lot of traffic or if the traffic is moving slowly, it is better to opt for Cabify. It's the only option that doesn't use the price variable. However, for a ride that doesn't have a lot of traffic, Uber rates can save us almost one and one-half euros. Taxis should be considered during the day, that is, with Rate I, provided it is not a time of high demand. As several users have expressed, this can mean a significant increase.
On a Friday night the story can change radically. You go out for some drinks and at certain times of the early morning it is not always easy to hunt down a taxi no matter how many apps you might have. That's when flexible pricing can be to your advantage. The same with concerts or soccer matches. In any event, the battle between drivers for companies like Uber or Cabify against taxi drivers is more alive than ever and at Planabout we will be attentive in order to give you the latest news.
