In many delivery businesses, pricing often varies depending on the distance or duration required to complete an order. Adjusting prices based on these factors allows you to offer more accurate and fair delivery fees to your customers while also covering operational costs effectively.
In this guide, we’ll show you how to configure distance- or time-based pricing in a step-by-step process.
Setting pricing for a service:
To start, navigate to the following path:
Admin Center -> Pricing-> Select a service-> Edit(button)
Base:
The base price, as the name suggests, serves as the starting point for all price calculations. You can set the base price here, and any additional pricing factors will be added on top of this amount.
Tax:
To add tax to your order prices of this service type, you can set the tax amount here. The value should be entered as a decimal between 0 and 1 — for example, 0.3 represents 30% tax.
Duration-Based Pricing:
To set your pricing based on duration, enter a range of minutes along with the price for that range.
The price will be calculated per minute within the specified range.
Example:
If you set the range from 0 to 30 minutes with a price of 0.5 (i.e., 50 cents per minute), then:
A 10-minute delivery will cost 10 × 0.5 = $5.00
A 25-minute delivery will cost 25 × 0.5 = $12.50
Distance-Based Pricing:
You can set your delivery price based on the distance. Just enter a distance range (in kilometers or miles, based on your settings) and the price per kilometer or mile for that range.
The price will be calculated per minute within the specified range.
The system will multiply the distance by the price you set.
Example:
Let’s say you set a range of 0 to 10 km with a price of $1.20 per kilometer:
A 5 km delivery will cost: 5 × $1.20 = $6.00
A 9 km delivery will cost: 9 × $1.20 = $10.80
If the delivery distance is more than 10 km, the system will use the next range you’ve defined to calculate the extra distance.
Note: All the pricing settings you configure, such as base price, tax, duration-based, and distance-based pricing, etc, will be added together to calculate the final order price.
Setting pricing for a vehicle type:
The process for setting these pricing options for vehicle types is very similar, with just a few small differences.
Follow the path below to access these settings:
Admin Center -> Pricing-> Select a vehicle type-> Edit(button)
Minimum base fare:
Set a minimum order amount to ensure the total price for this vehicle type never falls below a specified base price. Additional pricing settings for this vehicle type will be added on top of this base amount.
Multi-Dropoff Fare:
This fee is applied to the order price for each additional drop-off in an on-demand order type, ensuring accurate pricing for multiple stops.
Multi dropoff coefficient :
The Multi Dropoff Fare will be multiplied by this coefficient.
The Multi Dropoff Coefficient is a factor that the Multi Dropoff Fare is multiplied by. If you don't want it to affect the fare, simply set it to 1.
Schedule coefficient :
The Schedule Coefficient changes the fare when someone schedules a delivery. The fare is multiplied by this number.
If you don’t want the price to change for scheduled orders, just set it to 1.
The duration-based and distance-based settings for vehicle types work the same way as the service we discussed earlier
Note: Vehicle type pricing settings are applied on top of your service pricing settings and any other pricing configurations you may have set, such as zone-based pricing.
If you don’t need different pricing for each vehicle type, just set the duration- and distance-based settings at the service level.