Following in the footsteps of Uber’s fare decrease for UberX, InstantCab announced a new program called FareBack intended to save riders up to 30 percent of the fare. The company hopes that this latest endeavor will increase ridership, saying that among all the ridesharing and transportation startups, it still doesn’t have surge pricing.
The company explains the process: riders who summon an InstantCab vehicle will have their entire tip, up to 20 percent of the fare, along with 10 percent of the fare, added back to their account as credit automatically applied to their next ride.
Recognizing that there may be an increase in demand as a result, InstantCab has made an effort to bring on more drivers. It claims to now have “an average of three times more cars on the road at all times.” In doing so, the company hopes to improve service and decrease wait times.
InstantCab was motivated to reduce its price based on a decision permitting its drivers to use its own vehicles, reducing the overall operating cost. The company therefore elected to pass the savings onto the customers.
Founded by Aarjav Trivedi in 2012, InstantCab competes alongside other ridesharing services like Uber, Lyft, and Sidecar. It is a hybrid transportation service that allows users to be picked up by private vehicles or taxi cabs. It is only available in San Francisco and has provided more than 20,000 rides to date.
Photo credit: Spencer Platt/Getty Images