Ride-Hailing Terms Explained Simply

A

Additional Fees

Additional fees are extra charges beyond the standard fare, applied for specific services or situations. This could include waiting time, tolls, airport pickups, or late-night rides.

Admin Panel

A control dashboard for taxi business owners and administrators to manage operations, track bookings, monitor driver performance, handle finances, and oversee overall business activities efficiently from a single, centralized interface.

Advance Booking

The option for passengers to book a ride in advance instead of on the spot. It helps ensure availability and allows for better planning for both drivers and customers.

Airport Transfer Service

A dedicated service that focuses on transporting passengers to and from airports. Often includes fixed fares and priority scheduling for a smooth experience.

App Integration

The process of connecting the taxi app with tools and platforms, such as payment gateways, mapping services, and CRM systems, to make operations smoother and more efficient.

App Store Optimization

The practice of improving an app's visibility and ranking in app stores through strategies like keyword optimization, user reviews, and engaging descriptions.

Auto Dispatch

Auto Dispatch refers to an automated system used in ride-hailing services that assigns ride requests to available drivers based on various factors such as proximity, demand, and driver availability. This system quickly connect passengers with drivers without manual intervention.

Assisted Rides

Assisted Rides are services that provide additional support for passengers who may need help during their journey. This can include assistance for elderly or disabled individuals, ensuring they have the necessary support for safe and comfortable travel.

Automated Fare Calculation

It is a feature in ride-hailing applications that automatically determines the cost of a ride based on factors such as distance, time, and demand. This system provides users with an upfront fare estimate before they confirm their booking.

B

Base Fare

The initial cost of a ride, charged before adding distance, time, or any other fees. It covers basic service costs and operational expenses, ensuring a fair pricing foundation.

Bidding System

A feature where passengers can bid on fares to negotiate lower prices. It allows flexibility for riders and helps drivers select the best offers based on their preferences.

Booking

Booking refers to the process of requesting a ride through a mobile application. Users specify their pick-up and drop-off locations, select their preferred vehicle type, and confirm the ride. This process connects them with nearby drivers who can accept the request and provide transportation.

Booking Confirmation

A notification that confirms a ride booking, including essential details like the driver’s contact information, estimated arrival time, fare, and trip information to keep passengers informed.

Booking ID

A unique number assigned to each booking, which makes it easy to track trip details and resolve any issues.

Business Account

A centralized account type for companies to manage and pay for employees' travel. It includes billing, reporting, and tracking features for better control and cost management.

Business Model

The strategy a taxi business uses to make profits, which includes fare pricing, commission structures, operational logistics, and the delivery of services for long-term sustainability.

C

Cancellation Fee

A fee charged when a passenger cancels a ride booking. It compensates the driver for time and effort spent. In cases where the cancellation occurs due to the driver's decision, the fee is directed to the platform’s admin instead.

Cancellation Policy

A set of rules outlining when and how passengers can cancel a booking, including time limits, fees, and conditions to protect the interests of drivers and services.

Cancellation Rate

The percentage of bookings canceled by passengers, which measures service reliability, operational efficiency, and customer engagement across different locations and time slots.

Cancellation Window

A specific timeframe during which a passenger can cancel a booking without incurring any penalties or fees.

Carpooling

Carpooling is the practice of sharing a car journey among a group of people, allowing them to travel together instead of driving separately.

Cashless Payment

A method where passengers pay for rides electronically, using credit cards, digital wallets, or online payment systems.

Charge Rate

Charge Rate refers to the amount a ride-hailing service charges per unit of distance or time for a ride. This rate can vary based on factors such as vehicle type, demand, and location.

Cloud-Based Dispatch Solutions

These are the software systems that manage ride requests and driver assignments through cloud technology. These solutions allow for real-time tracking, efficient routing, and improved communication between drivers and passengers.

Commission Rate

The percentage of the fare that ride-hailing platforms retain from drivers' earnings for facilitating rides.

Corporate Account

A service plan that helps businesses manage employee travel with centralized billing and easy booking features.

Cost Per Mile

It is a pricing metric used by ride-hailing services to determine how much passengers will pay based on the distance traveled during a ride. This cost is calculated by dividing the total fare by the number of miles driven.

Customer App

Customer App refers to the mobile application used by passengers to request rides, track drivers, and make payments. This app provides users with features such as fare estimates, driver ratings, and trip history.

D

Delivery Service

Delivery Service refers to a service that transports goods or food rather than passengers. This service often utilizes the same platform and drivers as passenger rides but focuses on delivering items to customers.

Demand Forecasting

It is the process of predicting future ride requests in specific areas based on historical data, trends, and external factors.

Digital Wallet

An electronic wallet where passengers store funds and make fast, secure, and convenient payments for taxi bookings through mobile apps and online platforms.

Dispatch

The process of matching ride requests from passengers with available drivers in a ride-hailing service. This involves order submission, driver matching based on proximity and availability, and real-time tracking of the ride.

Dispatcher Console/Panel

A tool for dispatchers to manage, monitor, and assign rides, driver availability, and operations in real-time.

Distance-Based Fare

A pricing structure that charges passengers based on the distance traveled during a ride. It typically includes a base fare plus additional charges per mile or kilometer.

Driver App

An app that enables drivers to get trip requests, navigate routes, communicate with passengers, and manage bookings.

Driver Availability Status

The current state of drivers, indicating whether they are available to accept ride requests or offline.

Driver Incentives

Rewards and bonuses for drivers who meet performance targets, maintain high customer ratings, and deliver exceptional service.

Driver Onboarding

The process of integrating new drivers into a ride-hailing platform, including training, background checks, and familiarization with the app and policies.

Driver Rating

A score given to drivers based on passenger feedback, typically on a scale of 1 to 5 stars. This rating reflects the driver's performance and can impact their ability to continue driving for the platform.

Drop-off Location

The designated endpoint where passengers are taken after their ride. This location is determined during the ride request and can influence fare calculations and driver navigation.

Dynamic Pricing

A pricing strategy that adjusts fares in real time based on demand, supply, and other factors such as time of day or special events. This approach aims to balance rider demand with driver availability.

E

E-hailing

A service where passengers use a mobile app to book a ride on-demand, rather than hailing one from the street.

Emergency Button/SOS

A safety feature in the app that allows passengers and drivers to send an urgent alert to support services or emergency contacts in case of accidents or dangerous situations.

Empty Mileage

The distance that a driver travels without a passenger in the vehicle, often occurring between drop-off and the next pick-up.

Estimated Time of Arrival (ETA)

An approximation of how long it will take for a driver to reach the passenger's pick-up location or the destination. ETA calculations consider factors such as distance, traffic conditions, and route efficiency.

F

Fare

The amount charged by ride-hailing services for transportation, typically based on distance, time, and demand.

Fare Adjustment

A modification to the standard fare, which can occur due to factors such as surge pricing, discounts, or specific conditions affecting the ride's cost.

Fare Estimate

An approximate calculation of the cost of a ride provided to passengers before they confirm their booking. This estimate considers factors like distance, time, and current demand.

Fixed Fare

A predetermined price for a ride that does not change based on distance or time. This fare structure is often used for specific routes or services.

Fleet Management

The process of overseeing and coordinating a group of vehicles used in ride-hailing services. This includes tasks such as maintenance, dispatching, and optimizing vehicle usage to ensure efficient operations.

Fleet Utilization Rate

A metric that measures how effectively a fleet of vehicles is being used. It is calculated by comparing the number of active vehicles on the road to the total number of vehicles in the fleet, indicating operational efficiency.

G

Geo-Fencing

A location-based technology that creates virtual boundaries around specific geographic areas, triggering actions when a device enters or exits these boundaries.

Gig Economy

A model where drivers work as freelancers, choosing their own schedules and working on a per-job basis.

GPS Tracking

A technology that utilizes the Global Positioning System (GPS) to determine the precise location of a vehicle or device in real-time. It is essential for navigation, monitoring driver locations, and providing estimated arrival times for passengers.

H

Hail

The traditional method where passengers wave down a taxi on the street instead of booking through a digital app.

Heat Map

A visual representation showing areas with high demand for rides. It helps drivers and dispatchers identify popular locations and increase efficiency by focusing their efforts where passengers are requesting rides.

Hot Spot

Areas where demand for taxi services is unusually high, often due to events, peak hours, or specific locations like airports, nightlife areas, or shopping districts.

Hourly Rate

A fare structure where passengers pay based on the number of hours a vehicle is used instead of distance, often suitable for long trips or hourly hires.

I

Idle Time

The duration that drivers spend waiting for ride requests after completing a trip.

In-App Calling

A feature that allows passengers and drivers to call each other directly within the app without sharing personal phone numbers.

In-App Messaging

A feature within ride-hailing applications that allows communication between passengers and drivers through text or voice messages.

Incentive Program

Programs that reward drivers for meeting performance metrics, such as high ratings, completing a certain number of rides, or maintaining good punctuality.

Instant Booking

A service option that enables passengers to book a ride immediately. This feature provides convenience and quick access to transportation.

Invoicing System

A structured method used by ride-hailing platforms to generate and manage invoices for completed rides. This system typically includes details such as fare breakdowns, payment methods, and transaction records for both drivers and passengers.

K

Kiosk

A self-service station where passengers can book, pay for rides, and get information about taxi services. Often placed in airports, stations, or key urban locations.

L

Late Cancellation Fee

A fee charged when a passenger cancels a ride too close to the pickup time. It compensates the driver for wasted time and effort.

Live Tracking

A feature that allows passengers to monitor the real-time location of their driver during a ride.

Location Sharing

The ability for passengers to share their current location with friends or family through the app. This feature is often used for safety, allowing others to track the passenger's journey.

M

Minimum Fare

The lowest amount charged for a ride, regardless of distance or time traveled. This fare ensures that drivers receive a baseline payment for their services.

Mobility as a Service (MaaS)

An integrated approach to transportation that combines various transport services into a single accessible and customer-friendly platform. MaaS aims to provide seamless travel experiences by offering multiple mobility options through one application.

Multi-Stop Ride

A service option that allows passengers to add multiple destinations to a single trip. This feature is useful for errands or group travel, allowing stops along the route without needing to book separate rides.

N

Negotiated Fare

A fare where passengers and drivers agree on a price before the trip, often providing savings for passengers and flexibility for drivers.

No-Cancellation Policy

A policy that restricts passengers from canceling a ride after a certain point, often implemented to reduce driver wait times and ensure efficient service.

O

Operator

The entity or individual that manages the ride-hailing service, overseeing operations, driver recruitment, and customer support.

Operator App

An app for platform operators to manage bookings, monitor routes, communicate with drivers, and oversee overall service operations from a centralized interface.

Order History

A record of past ride requests made by a passenger, including details such as dates, destinations, fares, and driver information.

Order Queue

The sequence in which ride requests are processed by the dispatch system. Passengers may wait in this queue until a driver becomes available.

Out-of-Service

A status indicating that a driver is temporarily unavailable to take bookings, often due to reasons like breaks, vehicle maintenance, or personal matters.

P

Passenger App

A user-friendly mobile application that allows passengers to book, pay, and manage their rides while tracking their location and communication with drivers.

Pickup Location

The designated spot where the driver is to collect the passenger. This location is specified during the ride request and can be adjusted if needed.

Prepaid Rides

Rides that are paid for in advance through the app, allowing passengers to secure their transportation without needing to handle payment at the time of the ride.

Private Hire Vehicle (PHV)

A vehicle hired privately, usually through taxi services or apps, rather than picking up street-hailing requests. PHVs often follow specific licensing and operational regulations.

Q

Queue

A line or sequence of ride requests waiting to be fulfilled by available drivers. Efficient management of the queue is essential for minimizing wait times.

Quota

A predetermined number of rides or earnings that drivers are encouraged or required to complete within a specific timeframe, often used to motivate performance.

R

Rating System

A system where passengers and drivers rate each other after a trip. It encourages better service, accountability, and transparency, helping maintain high service standards and trust among users.

Real-Time Tracking

A feature that continuously updates a vehicle's location and status, make sure that passengers and dispatchers can monitor trips, optimize routes, and communicate effectively throughout the journey.

Referral Program

A system where existing users get rewards for referring new passengers or drivers. It encourages loyalty, increases user acquisition, and helps expand the platform's customer base.

Return Trip

A ride that takes a passenger back to their original starting point after reaching their destination. This option can be booked as part of a single request or separately.

Revenue Model

The strategy a taxi business uses to generate income, including fare pricing, commission rates, discounts, and promotions.

Ride History

A comprehensive log of all rides taken by a passenger, including details such as dates, times, routes, fares, and driver ratings.

Ride Request

The action taken by a passenger when they seek to book a ride through the app. This initiates the dispatch process to find an available driver.

Ride Type

The classification of rides offered by the service, such as economy, premium, shared, or luxury options, each with different pricing and vehicle types.

Ride-Hailing

A system that plans the best routes for drivers to take, considering traffic, distance, and time, ensuring faster travel, lower costs, and higher efficiency.

Ride-Sharing

A service model where multiple passengers share a single vehicle for their journeys. This typically reduces costs for riders and maximizes vehicle utilization for drivers.

Route Optimization

The process of determining the most efficient path for a driver to take to reach a passenger's destination. This involves considering traffic conditions and distance.

S

Scheduled Rides

Rides that are booked in advance for a specific date and time. This feature allows passengers to plan their transportation needs ahead of time.

Service Area

The geographic region where a ride-hailing platform operates and provides services. This area defines where drivers can pick up passengers and drop them off.

Service Types

Different categories of transportation services offered by the platform, such as standard rides, luxury rides, shared rides, or specialized services like wheelchair-accessible vehicles.

Shared Rides

A type of ride-sharing service where passengers traveling in similar directions can share a vehicle, reducing costs and increasing efficiency.

Split Fare

A feature that allows multiple passengers to divide the total fare of a ride among themselves. This is often used for shared or group trips.

Surcharge

An additional fee added to the standard fare under certain conditions, such as high demand periods or special circumstances like tolls or airport fees.

Surge Pricing

An automated fare adjustment system during high-demand periods, where prices increase based on factors like location, time, and demand to maintain service availability.

Surge Zone

An area where demand for rides exceeds supply, prompting higher fares due to dynamic pricing. Surge pricing aims to incentivize more drivers to operate in these zones.

T

Taxi Meter

A device used in traditional taxis that calculates fare based on distance traveled and time spent on the trip.

Taxi Rank

A designated area where taxis wait to pick up passengers. Commonly located at airports, train stations, and busy city centers.

Telematics

Technology that combines telecommunications and monitoring systems to collect data on vehicle location, speed, fuel consumption, and other metrics.

Terminal Fee

A charge added to fares for airport pickups or drop-offs, covering fees incurred for accessing airport facilities.

Ticketing System

A method for managing customer inquiries or issues through tickets that track requests from submission to resolution.

Time-Based Fare

A pricing model that charges passengers based on the duration of the ride rather than just distance traveled.

Tokenization

A method of securely storing payment information through digital tokens instead of sharing actual credit card details.

Toll Charges

Fees incurred when vehicles use toll roads during a trip. These charges are typically added to the total fare for transparency in billing passengers.

Total Fare

The final cost of a trip, including all charges like distance, time, surcharges, tolls, and any additional fees.

U

Upfront Pricing

A fare estimation method that provides passengers with an exact price before they confirm their ride request.

V

Value-Added Services

These are additional features or offerings provided by ride-hailing platforms that enhance the customer experience beyond basic transportation.

Vehicle ID

A unique identifier assigned to each vehicle in a ride-hailing fleet. This ID helps in tracking and managing vehicles, ensuring safety and accountability by allowing passengers to verify the identity of their driver’s car.

Voice Commands

A feature that enables users to interact with a ride-hailing app using spoken instructions. This functionality enhances convenience and accessibility, allowing passengers to book rides or access information hands-free.

Vouchers

Discount coupons or codes provided by taxi services that offer passengers reduced fares or promotional deals. Vouchers are often used as marketing tools to attract new users or encourage repeat business.

W

Waiting Time

The duration that passengers wait from the moment they request a ride until the driver arrives at the pick-up location.

White-Label Solution

A customizable software solution that allows taxi businesses to rebrand the service under their own name and design, maintaining brand identity while offering full functionality.

Y

Yellow Cab

A term for traditional taxi services, often characterized by distinct yellow vehicles. It refers to a reliable, time-tested method of getting urban transportation.

Z

Zero Fare

A special fare scenario where a ride is provided at no cost, often as a promotion, reward, or loyalty incentive.

Zonal Coverage

The specific geographic areas served by a transportation system or service, often divided into distinct zones. Each zone may have different pricing structures or service levels, allowing for tailored transportation solutions based on local demand and needs.

Zone Pricing

A fare structure that sets different rates based on specific geographic zones within a service area. This strategy allows ride-hailing or transit services to adjust fares according to factors like distance traveled, demand within each zone, and operational costs, providing a more flexible pricing model.

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Ride-Hailing Business Terms and Glossary

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