How e-hailing fares are worked out (and 7 ways to pay less)

Have you ever booked the same trip twice and paid two different prices? You are not imagining it. E-hailing fares change, and there are good reasons why.

This guide explains how fares are worked out, using Loop as the example, and shares seven simple ways to save.

What goes into a fare?

Most e-hailing fares are built from a few parts:

1. A base fare. A small starting amount for every trip.
2. Distance. How many kilometres you travel.
3. Time. How long the trip takes. Traffic adds time.
4. Stops. A small fee for each extra stop.
5. Busy times. When lots of people want rides and few drivers are free, prices can go up for a while.
6. A minimum fare. Very short trips have a minimum price so they are still worth it for the driver.

How Loop works out your fare

On Loop, we work out your fare from the real driving route before you book. That includes the distance, the expected time and any stops.

You see the total before you book. The price you see is the price you pay.

If it is a busy time, the app shows it, so you are never surprised.

What about cancellation fees?

If you cancel, a fee may apply. It depends on how far the trip has gone. For example, cancelling after the driver has already driven to you is different from cancelling straight away.

Any fee is shown upfront. And only money you actually paid can be refunded.

7 ways to pay less

1. Avoid the rush

Prices are usually higher in peak times, like weekday mornings, evenings and late on Friday and Saturday nights. If you can leave a little earlier or later, you may pay less.

2. Watch for savings in the app

When drivers are in demand, Loop sometimes offers ways to bring your fare down. Keep an eye out for them when you book.

3. Ride together

Going out with friends? Book one Small group or Full vehicle ride and split the cost, instead of each person booking their own.

4. Plan your stops

Every stop adds a little. Group your errands into one trip with fewer stops.

5. Use promo codes

Check for promo codes and enter them at checkout.

6. Use referral codes

Share your referral code with friends. Have a friend's code? Add it when you sign up.

7. Book ahead for big trips

For important trips, like an early flight, schedule your ride ahead. You avoid rushing and the stress of last-minute booking.

Why do fares need to be fair to drivers too?

Cheap rides are great. But if fares are too low, good drivers leave, cars get older and service gets worse. A fair fare keeps good drivers on the road, so you get a safe, reliable ride.

At Loop, drivers see their payout on every trip, and 100% of your tips go to them.

Quick summary

• Fares = base + distance + time + stops, with higher prices at busy times.
• Loop shows your total before you book.
• Save money with in-app savings, group rides, promo codes and smart timing.

Read next: paying cash for e-hailing.