Research shows in-app fare negotiation can improve mobility access and fairness

Independent research by Oxford Economics in collaboration with inDrive has shown positive results for in-app fare negotiation, with riders and drivers completing more trips, achieving fairer outcomes and improving access to transport.

In South Africa, where incomes, trip distances and transport options vary widely across cities and towns, this flexible pricing model helps make rides more affordable for passengers while allowing drivers to earn a sustainable income.

The study draws on multi-market data showing that while algorithmic pricing has grown ride-hailing use globally over the past two decades, fixed pricing mechanisms can struggle to serve the full diversity of rider and driver preferences in emerging markets.

“Instead of replacing algorithms, in-app negotiation builds on them by giving riders and drivers discretion to reach prices that reflect real conditions,” says Ashif Black, country representative for inDrive South Africa. This adaptability, he says, can unlock rides that would otherwise not be completed due to mismatch between fixed estimates and local expectations.

inDrive operates a transparent peer-to-peer pricing model that supports negotiation and is active in all nine South African provinces across major and secondary cities. The platform is available in over 16 cities nationwide, including Cape Town, Johannesburg, Pretoria, Durban, Gqeberha, East London and Pietermaritzburg, bringing flexible mobility solutions to commuters, workers and households nationwide.

Globally, the inDrive app has been downloaded well over 200 million times and is consistently ranked among the world’s most downloaded mobility platforms. In South Africa, the platform has seen sustained growth since its 2019 launch, with its user base and driver network expanding year-on-year as more locals choose peer-negotiated fares over rigid pricing models.

The study also shows that fare negotiation gives riders more control over what they pay, helping them afford trips they may otherwise skip, while giving drivers greater certainty and flexibility over their earnings. Across diverse markets, users report being able to complete more trips, reach areas that were previously difficult to access, and agree on fares that reflect their individual circumstances.

“Direct fare negotiation empowers South African drivers and riders alike to agree on prices reflective of real-world conditions, from daily commuters to shift workers and informal economy users. This human agency improves affordability and fairness, especially in areas where traditional pricing can fail to capture local supply and demand,” says Black.

He adds that South Africa’s challenging economic environment makes flexible earning models particularly meaningful, helping many earn a sustainable income without being constrained by rigid fees.

The research suggests that allowing riders and drivers to negotiate fares works alongside existing pricing systems, making it easier for people to get around. In South African cities and towns, this approach helps more passengers access transport while giving drivers a fair chance to earn, without relying on temporary discounts or subsidies.

The study further found that fare negotiation helps drivers and passengers reach areas that are often skipped by standard platforms. In South Africa, this means commuters in townships, peri-urban areas and other hard-to-reach locations can reliably access transport, while drivers can take on trips that would otherwise be uneconomical.

“Having control over fares ensures riders and drivers in South Africa have access to a transport system that is fairer, more practical and better suited to local conditions,” says Black. “The study shows what we have known all along: that flexible pricing helps more people get around while supporting drivers’ livelihoods – making mobility work for everyone.”