Since the past couple of weeks, we have been experimenting with a new pricing model to ensure things run smoothly at times when the situation doesn’t quite permit for smooth functioning – rains, protests and the like. This caused some of you to raise a few important questions on Twitter and other media, which we will address below.
When is the surge fee applicable?
Let’s tackle the elephant in the room to begin with. Surge fee does not apply to for the following conditions:
- When the demand exceeds the supply of delivery executives.
- During peak hours and busy times
- Poor traffic conditions increasing time to delivery
- Increased food preparation/delivery time of a restaurant
We will continue to operate following the same model that we always have. Surge fee for the foreseeable future, exclusively applies to national holidays, local festivals and bad weather, in order to serve as a motivator to the delivery fleet.
Flat or dynamic?
Another crucial detail facing ambiguity is the fact that it is a fixed pricing model. Unlike cab-hailing services, surge fee will not be levied in multiples of the amount that one would have to pay under normal circumstances. As of today, the surge fee is, and will be a nominal flat fee.
Does it add to company revenue?
In a nutshell, no. No part of the money earned through surge priced-orders leaves the delivery executive level. It exists only to ensure that you continue to receive the best service when good service becomes harder to find. The entire amount is passed down directly to the delivery executives carrying out these orders.
To summarise, surge pricing on our orders is in place to ensure that come rain, or shine (or bandh), exquisite food will persistently find a way to you, the ever-hungry foodie.