Quote Originally Posted by jvt22222 View Post
Moses, I really wish you could give more explanation to your post … I would really like to understand it better.
When taxi company enters to local market they do it by damping - keep prices very low, make strong promotion, earn loyalty of new clients. But for to have enough drivers company pays extra to driver for each order because drivers want normal price or they will switch to serve clients of another company.

Usually exists "minimal compensation" - amount of money what driver will get after serving one client. For example: somebody made short ride and paid 30 Bahts, but driver will receive from company 100 Bahts because it is minimal compensation by agreement. That why all taxi companies have negative profitability at first 1-2 years on new markets - they pay own money to drivers for each client for to compensate low fares.

After 1-2 years of damping company will have enough loyal clients and will rise fares step by step for to get profit.