Can a city make Uber pay for doing business on its street?
Sao Paulo took up this challenge & put in place a strategy to make Uber pay for doing business on its street!
Research seems to indicate that streets make up 1/3rd of public space. It decided to levy a tax on Uber for letting them do business on its ‘public place’.
The city devised a smart algorithm to make Uber pays for each mile travelled on its street.
Inspired by Ubers dynamic pricing strategy, the city put in place its own version of ‘dynamic’ pricing strategy to not only earn money but also reduce congestion.
The algorithm levies more charges on Uber if it enters the city centre during peak time. This charge goes up even more if Uber is ferrying fewer passengers & drops if it is carrying more passenger!
Has this strategy delivered results?
It is estimated that Sao Paulo has earned $ 50 million from implementing this strategy.
1. Every asset owned by you can be monetised.
2. Be open to learning the tricks of the trade from your stakeholders & intelligently apply them to your business!