The user experience: how ride fare negotiation can enhance customer satisfaction in ride-hailing

Abstract

The research explored the impact that fare negotiation aspects of ride-hailing platforms have on customer satisfaction and drivers’ compensation in the United States. Although the services such
as Uber and Lyft have revolutionised transport in cities, their distinctive pricing strategies result
in customers’ frustration, especially during peak hours. In this paper, a survey of the available literature focused on the effects of fare negotiation on both the user side and the driver’s side by
analysing the publications of the academic articles, industry reports, and market research surveys.
The research shows that 72% of users consider the transparency of fare calculation to be the top
priority, with 67% of the users complaining about high surge prices. The study also reveals large
discrepancies in the drivers’ income; the drivers who work full-time in Chicago make between
£31-£40 per hour gross of expenses, but after operational costs, the amount is between £18.90
£27.90. During the thematic analysis, essential factors influencing customer satisfaction were revealed, namely, the price transparency, dynamic pricing strategies, and relative estimation of
service quality. The research concluded that the incorporation of fare negotiation features could
improve the service quality, customer satisfaction, and driver’s income. This points to the need to
formulate policies that will classify and respond in equal measure to both the users and drivers that are involved in the provision of the ride-hailing services.