Improving Bolt’s Pricing Strategy

Get accurate pricing information and enjoy a seamless and satisfying driving experience.
Bolt

Role

UX Designer
UX Researcher

Duration

5 Weeks

Overview

Bolt is the first European super-app, aiming to make urban mobility more affordable, safe, and sustainable. Their mission is to help people save time, money, reduce stress, and enhance cities, while empowering millions of entrepreneurs such as drivers, couriers, restaurant owners, and store owners.

Bolt embodies the essence of freedom of movement and strongly believes that cars should be accessible to all at a low price. However, the fluctuation in ride prices can be discouraging for those with limited financial means. Bolt's pricing model, which changes based on traffic and time, often fails to provide customers with sufficient prior information. This contradicts their mission of saving money and making transportation affordable. Customers can find it frustrating when the price increases after booking a car, as they may not have enough funds to cover the updated cost. The delayed information leads to a poor user experience.

What is the Problem?

1.
Users often experience ride prices changing after they reach the bus stop, resulting in them having to pay more than initially anticipated. This can pose a significant problem if the user does not have sufficient funds to cover the increased cost.
2.
Users may have a negative driving experience with a particular driver, yet they might still be suggested the same driver for another ride.
3.
Users often encounter significantly higher ride prices compared to traditional rates.

Objectives

1.
Design a feature that enables customers to anticipate and prepare for price changes resulting from factors such as traffic and time, ensuring that the updated prices do not come as a surprise to them.
2.
Design a feature that empowers users with the ability to choose their preferred driver for a ride.
Design Process

Research Objectives

  1. Understand users' overall experience with the app and service.
  2. Understand and evaluate users view on the pricing of rides
  3. Identify specific pain points of users and provide appropriate solutions.

Research Process

  1. Secondary Research
  2. Competitive analysis
  3. User Survey

1. Secondary Research

Based on my research on user reviews from the Google Play Store, only a few people reported having a positive experience with the app, while many users encountered multiple issues. However, one common and consistent problem emerged: the price changing after reaching the destination due to surges or peak times. This dynamic frustrated users and led to numerous complaints.

Furthermore, users expressed dissatisfaction with the quality of driver services, with one individual stating that drivers should receive orientation before being allowed to pick up customers. Although a star rating system exists, it does not necessarily determine which drivers are suggested to users.
Google Playstore Review

2. Competitive Analysis

I downloaded both the Bolt and Uber apps to assess their user experience and overall feel.
However, I was unable to download the Lyft app as it is not available in my country. Therefore, my research on Lyft was based on secondary sources such as websites and user reviews. In order to differentiate themselves and embody their respective goals, competitors often introduce unique features that set them apart.

Strengths

Strengths
Competitors in the ride-hailing industry have specific goals that are reflected in their distinctive features. Bolt aims to provide affordable ride prices, catering to customers across various income ranges, which contributes to their growing market share, particularly in countries like the US.

Uber, on the other hand, focuses on affordability through features like ride-sharing, initially introduced by Lyft. This reduces ride costs and helps lower the carbon footprint by optimizing vehicle usage. Uber's commitment to sustainability is further emphasized by allowing multiple drop-offs, offering users a range of convenient options.

Lyft pioneered the concept of ride-sharing, bridging the gap between public transportation and private cars. This approach saves money and reduces carbon emissions by reducing the number of vehicles on the road. Lyft's comprehensive background checks for drivers contribute to passenger safety, addressing concerns such as incidents of driver misuse. Driver selection is not solely based on star ratings but also incorporates thorough background checks.

Weaknesses

Weaknesses
Every one of them had similar business models that used dynamic pricing. A pricing system that depends on different factors such as weather, traffic, time, etc. This enables them to maximize their profit. However, the time when the price is revealed to you differs. Uber and Lyft tell you their price before taking the ride while Bolt tells you the price after you get to the destination.

3. User Survey

To gain insights into users' frustrations and pain points regarding price changes and the driving experience, a survey was conducted. The survey collected responses from 26 participants and included relevant questions to validate the issues identified in the secondary research.

Relevant survey responses

Relevant survey responses
The user survey further validated the problems identified in the secondary research.
.
71% of the participants said that the price became higher after getting to the destination
.
14% of the participants said that the drivers were not friendly.
“I was charged a particular fee prior to the ride but at the end of the ride, I was charged higher” - Participant

User Persona

I created two fictitious personas to represent the needs and frustrations of a larger group of Bolt users.

Solution

1. Pricing

Bolt and other mobility service providers use a pricing system known as Dynamic or Surge pricing.

Dynamic pricing is a pricing strategy that allows firms to modify product prices in response to changing demand. The pricing strategy is aimed at getting the best price for a particular product or service in response to changing factors. This pricing methodology is adopted by several industries, such as event ticketing, hospitality, real estate, and transportation.

Bolt and other mobility services give prices based on several variables like traffic patterns, weather conditions, time, competitor prices, distance, and demand.

Should Dynamic pricing be removed from bolt?

Dynamic or surge pricing provides a fairly accurate method of setting prices for their ride as a number of variables such as traffic and demand are not predictable.

Removing dynamic or surge pricing without having an accurate system of predicting prices would put the company and drivers at a disadvantage. Variables like traffic and demand are unpredictable, and dynamic pricing provides a fair method of setting prices. Without it, the company may experience losses if variables change during the ride, and rides could be overpriced, potentially leading riders to switch to competitors.

I firmly believe that dynamic pricing should continue to be utilized as AI and other prediction systems used for pricing variables are often not entirely accurate.

If dynamic pricing should stay, what then is the problem?

The research findings indicate that Bolt informs their customers about price changes after the ride, which leads to a feeling of being deceived among customers. The issue is not solely about paying an additional amount, but rather the change from the agreed-upon price.

Consistency is valued by users, and discovering the price change after the ride worsens the overall experience.

Uber solved this by providing upfront pricing before the ride, which is beneficial in terms of transparency. However, it can result in losses for the company if there are changes in the variables during the ride that affect the cost.

Information

Riders are notified during the ride about surge pricing, which prepares them for an increase in price. This ensures transparency and provides riders with an understanding of the reasons behind the price change.

This approach eliminates the surprise and unpreparedness associated with sudden price changes. It gives riders the opportunity to add funds to their account if needed, ensuring they have enough money to cover the adjusted fare.
The price increase is communicated to the customer, and they are given the option to proceed with the ride or cancel if they find the new price unfavorable.

The goal is preparedness and acceptance. Users will be informed about the price hike in advance and given the choice to proceed with the ride or not, ensuring that they are aware of the increased price and have the autonomy to make an informed decision.

They won't feel deceived or cheated because they have willingly accepted the increased price before proceeding with the ride.

2. Driving Experience

Bolt automatically fixes you to the nearest available driver. It is true that you are allowed to rate the driver after a ride. but the ratings are only used by the Bolt to determine if the driver should remain on the platform. Users should have the ability to choose their driver based on ratings and location, as they are the ones taking the ride. This gives them control and ensures they are not paired with a driver they had a negative experience with in the past.

Usability Test

Maze.co was used for conducting usability testing, where users were asked to provide feedback on the overall impression of the screens and suggest improvements for enhancing the user experience.

Additionally, they were instructed to perform basic operations associated with requesting a ride.
Usability Test Changes made after usability test

Key Takeaway

I began this project with the assumption that people primarily use Bolt for its affordability and easy access to remote areas. However, through my research, particularly in my locality (Nigeria), I discovered that many users prioritize comfort when choosing mobility services like Bolt.

They are willing to pay the extra price per ride for the experience of being in control.

I believe that these little adjustments will increase Bolt's market share tremendously and boost revenue.