Following trends in the greater New Zealand car rental industry, demand for vehicles on Yourdrive fluctuates. The data shows a difference in demand for vehicle hire and different types of vehicles during different times of the year and in different locations. Logically, the price of a vehicle should follow these changes in demand so the two factors balance.
Today we're launching 'Smart Pricing'. This is an intelligent new feature which will ensure the pricing of vehicles on Yourdrive is competitive and consistent. While it’s up to each vehicle owner to enable Smart Pricing, we will be strongly encouraging it. The alternative, 'Manual Pricing' is also an improvement on our current system.
Previously, each vehicle listed on Yourdrive had a fixed hourly, daily and weekly rate.
With Smart Pricing, vehicles will not have fixed prices. Instead, their daily price will be calculated by our intelligent algorithm which will automatically adjust the price based on seasonality, interest, geography, and car type. This algorithm is based on data and has been rigorously tested, however, will be adjusted and improved with time. While vehicles will have a default daily rate on Manual Pricing, the price is not fixed here either as owners will be able to override their default price for selected days/periods.
The hourly price will always be one-quarter of the respective daily price and there is no weekly price. Now, rentals greater than 5 days will automatically have a long hire discount applied. The discount starts at 10% for hires longer than 5 days and increases to 25%, in increments, for hires longer than 21 days.
We know this is a big change, however, we're confident it's going to greatly improve the Yourdrive experience for all of our users. Once you've checked out or experienced the new system, we'd love to hear your feedback because, as always, we'll be making continual improvements.
Find out more about how this change impacts your experience on Yourdrive.