Part 3: Define your revenue & pricing strategy

How to decide on your pricing?

When entering a new market, the recommendation is to consider the availability and prices of existing mobility options currently present in the city, and based on that, define your pricing strategy.

When entering a new market, the recommendation is to consider the availability and prices of existing mobility options currently present in the city, and based on that, define your pricing strategy.

For mopeds, what should be taken into account is that depending on the model selected, two people can ride on it, which allows for a higher price per minute. After defining the average value, you can then break it down by the pricing component:

Pay per minute pricing: a standard model, can be varied by including an 'ignition fee', and a different price per minute when the vehicle is parked

Time interval pricing: a dynamic model in which pricing varies following a certain logic (e.g. first 30 min cost X euro, next 30 min cost Y)

How do you improve rider retention and recurring revenue?

After a successful launch, you can start to understand common usage patterns and begin to introduce tools like subscriptions, promotions, and other offers to increase rider engagement and boost your revenue.

Subscription plans are a highly effective way to retain users to your service. Creating monthly and yearly subscription plans commits a frequent user to your platform by letting them pay a fixed amount and ride for lower rates. Meaning, if the rider uses your service enough, they can guarantee a lower rate per minute than the basic rates.

Discount packs, also called “credit packs”, will allow users to buy different packs of credit within the rider app with a discount, which they can later use for riding.

The riders benefit from a discount and, while they have credit left, are typically very loyal to your service. Subscriptions can also have this positive effect. Plus, since credit packs are paid upfront, the cash flow of your operation is improved.