Russian version of the article is available at the following link.

One of the first things any taxi company owner should do is configure his fleet by adding vehicle classes and the rates on which they are allowed to work. This article gives you a clear picture of how the system calculates trip costs.

*Regular rate: *

*Hourly rate: *

**Adding a new rate**

Let’s navigate to tab Tariffs of My Hub. Once you are in “Tariffs” tab choose “Add tariff”, select the necessary “Vehicle class” from the dropdown menu in the pop-up window, choose “Regular” or “Hourly” and press “Next”. And after Payment methods configuration page you will be transferred to the page with all the possible rate settings. “Regular” and "Hourly" tariffs tabs settings configuration will be slightly different.

**Configuring “Regular” rate settings**

Major parameters for a rate cost calculation are displayed in the left-hand column of the new rate window. Please, note that all the fields marked with a star are obligatory and the system won’t allow to save the settings with empty field value. We will now examine every parameter in detail.

“Flag down fee” can also be called a “seat price”. In simple words it is a set value for the provision of the cab/service. “Per minute” and “Per kilometer” are the costs set for a minute or kilometer of a ride. “Minimum” is the minimal cost of the ride which any customer will be charged for regardless of the trip duration or mileage. “Maximum” is an optional setting required should there be any regulations in the area for a maximum trip cost.

**Taximeter mode**

This tab allows you to set the taximeter running in two modes. “Time+ mileage” summarizes the cost of the trip distance and time spent as per the values in per minute/per kilometer fields. In “Time or mileage” mode the system displays an additional required box “Turning point speed” (km/h). The speed value set in this field will be the turning point at which the system switches from counting the ride price per minute (if below the value) to counting per distance (if above the value).

**Price calculation**

Finally, let’s make an exemplary rate setting and go through the calculation process within two different taximeter modes. The selected currency in My Hub below is USD. Meter mode is set to **"Time+mileage".**

From the above setting you can see that the immediate Minimum cost of the trip on this rate is 5$. Please, know that the Flag down fee of 3$ is included into minimum value. Let's say your ride has started and you've been on it for 2 kilometers and 2,5 minutes. The cost per this ride will be:

*2km x 0.5$+2.5min x 0.4$+3$=5$ (3$ for the Flag down fee).*

So, this is the point of the ride at which your Minimum is spent and the system will proceed calculating the cost as per the above fees of 0.5$ per kilometer and 0.4$ per minute. In case Flag down fee is higher than Minimum, the system will calculate it as 0 value.

In **“Time or mileage” mode**, the calculation switches between price per minute and price per km depending on the speed of the vehicle.

The turning point is set in the “Speed threshold” field. If the speed on the trip is lower than this threshold, the order cost is calculated based on the price per minute value. If higher than the speed threshold, the calculation is made on price per km. The minimum speed threshold allowed in our system is 2 km/h (1.24 mi/h).

Let’s take a sample trip of 2.5 minutes and 2 km.

Let’s assume that the driver stopped at the traffic light for 30 seconds. At that time the vehicle’s speed was 0 km/h, so the calculation is based on the price per minute. For the rest of the trip, the driver held a steady speed of 30 km/h. As this is above the speed threshold of 20 km/h, the cost is calculated based on the price per km.

The trip total for the above scenario should be calculated as follows:

*0,5 min x 0.4$ + 2km x 0.5$ + 3$ = 4.2$ (3$ for the flag down fee)*

“Time or mileage” taximeter mode is useful for areas with heavy traffic situations and multiple regulated crossroads.

We hope that the above tips will help you make a more efficient configuration of your tariff rates!