Improving Bolt’s Pricing Strategy

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

Overview

Bolt is an Estonian mobility company that offers ride-hailing, micro-mobility rental, food and grocery delivery (via the Bolt Food app), and car-sharing services. The company is headquartered in Tallinn and operates in over 500 cities in more than 45 countries in Europe, Africa, Western Asia, and Latin America.

Role

UX Designer
UX Researcher

Year

2022

Duration

5 Weeks

What is the Problem?

Users often experience ride prices changing after they reach the bus stop, resulting in them having to pay more than initially anticipated.

Users may have a negative driving experience with a particular driver, yet they might still be suggested the same driver for another ride.

Research Objectives

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

Research Process

Secondary Research
Competitive analysis
User Survey

Secondary Research

Based on my research of user reviews on the Google Play Store, few users reported positive experiences with the app. Many encountered issues, notably price fluctuations upon reaching their destination during surges or peak times, leading to a lot of frustration and complaints.

Users also expressed dissatisfaction with driver services, suggesting the need for driver orientation before picking up customers. Despite the presence of a star rating system, it does not effectively determine which drivers are suggested to users.

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 (Nigeria). Therefore, my research on Lyft was based on secondary sources such as websites and user reviews.

Competitors in the ride-hailing industry have distinct goals reflected in their features. Bolt aims for affordability, catering to diverse income levels, boosting market share in Europe.

Uber focuses on affordability through ride-sharing, cutting costs and carbon footprints by optimizing vehicle use. It offers sustainability through multiple drop-offs.

Lyft pioneered ride-sharing, saving money and reducing emissions. Its thorough driver background checks prioritize passenger safety, going beyond star ratings.

All of them employed similar business models incorporating dynamic pricing, which adjusts based on factors like weather, traffic, and time to maximize profits. However, the timing of price disclosure varies: Uber and Lyft reveal prices before the ride, whereas Bolt discloses prices after reaching the destination.

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 23 participants and included relevant questions to validate the issues identified in the secondary research.

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 services employ Dynamic or Surge pricing, adjusting prices based on factors like traffic, weather, time, and demand. This strategy optimizes pricing for maximum profit and is used across various industries, including transportation, event ticketing, and hospitality.

Should Dynamic pricing be removed from bolt?

Dynamic or surge pricing ensures fair pricing by adjusting rates based on unpredictable factors like traffic and demand. Removing it without accurate prediction systems would disadvantage both the company and drivers.

These variables are unpredictable, and dynamic pricing prevents losses and overpricing. Continuing to use dynamic pricing is crucial as AI prediction systems may not always be entirely accurate.

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

The research shows that Bolt's practice of informing customers about price changes after the ride can lead to feelings of deception. Customers value consistency, and discovering price changes post-ride worsens their experience.

Uber addresses this with upfront pricing, enhancing transparency. However, it can lead to losses if variables change during the ride, affecting costs.

Information

During the ride, riders are notified of surge pricing, promoting transparency and understanding of price changes. This eliminates surprises, allowing riders to add funds if necessary to cover the adjusted fare.

Customers are informed of price increases and given the choice to continue with the ride or cancel if they find the new price unfavorable. This promotes preparedness and autonomy, ensuring customers are aware of the increased price and can make informed decisions without feeling deceived.

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 assigns the nearest available driver without giving users the option to choose based on ratings and location. While users can rate drivers, these ratings only influence whether the driver remains on the platform.

Allowing users to choose their driver based on ratings and location would give them control and prevent pairing with drivers they've had negative experiences with.

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.

Additionally, they were instructed to perform basic operations associated with requesting a ride.

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.