How to Compute the Fare Difference Incentive

At the start of every week, we set a day’s Peak-Hour ride minimum (number of rides) and aGuaranteed Peak Hour Average Fare for the entire week.
If you meet the weekly Acceptance Rate & Driver’s Cancellation Rate requirements, for each day that you reach the Peak-Hour ride minimum, you can calculate that day’s incentive by:1. Taking the number of rides you completed per day during the peak hours of 5 AM to 10 AM and 5 PM to 10 PM
2. Multiplying this by the Minimum Peak Hour Average Fare
3. And subtracting your total collected Peak-Hour ride fare for that day from the result.

Remember that you will still have to meet the minimum weekly Acceptance Rate (85%) & maximum Driver Cancellation rate (20%) requirements to be eligible for this difference.

Note also that the Fare Difference Incentive is considered an incentive and will be subject to withholding tax.

HOW IS IT CALCULATED?

HERE ARE SOME EXAMPLES:

Week’s Daily Peak Hour Ride Requirement: 3 Peak Hour Rides
Minimum Peak Hour Average: P300Day: Monday

Ride 1 Fare: 100
Ride 2 Fare: 119
Ride 3 Fare: 134

Driver Peak Hour Fare collected for that day: 100 + 119 + 134 = P353

Minimum Peak Hour Average Fare x Number of Peak Hour Rides for that day = P300 per Ride x 3 Peak Hour Rides = P900

P900 – Actual collections = Day’s Fare Difference Incentive

= P900 – P353 = P547 (FDI) For Monday Alone!

Let’s say on Tuesday, you complete even MORE rides during the peak hours!

Ride 1 Fare: 140
Ride 2 Fare: 117
Ride 3 Fare: 129
Ride 4 Fare: 235
Ride 5 Fare: 210
Ride 6 Fare: 170

Driver Fare collected: 140 + 117 + 129 + 235 + 210 + 170 = P1001

Minimum Peak Hour Average Fare x Number of Peak Hour Rides = P300 per Ride x 6 Peak Hour Rides = P1800

P1800 – Actual collections = Fare Difference Guarantee Incentive

= P1800– P1001 = P799 additional FDI For Tuesday’s Peak Hour Rides!

Let’s say on Wednesday though, your car was on coding, and could only squeeze in just 2 peak hour rides.

Since the week’s daily minimum is 3 peak hour rides, you won’t get any additional Fare DifferenceIncentive for that day.

But not to worry! Your Fare Difference Incentive is calculated on a daily basis, and you will still be able to receive your FDI for Monday and Tuesday, assuming you still meet the weekly AR & Cancellation Rate Requirements!

What happens if your peak hour fare is higher than the fare difference incentive for that day?

Let’s say on Thursday, you complete 4 peak hour rides.

Ride 1 Fare: 340
Ride 2 Fare: 475
Ride 3 Fare: 520
Ride 4 Fare: 399

Driver Peak Hour Fare collected for that day: 340 + 475 + 520 + 399 = P 1734

Minimum Peak Hour Average Fare x Number of Peak Hour Rides for that day = P300 per Ride x 4 Peak Hour Rides = P1200

Since P1200 (Fare Difference Rate) is less than P1734 (Thursday’s collections), no additionalincentives will credited for that day.

Then on Friday, let’s say you complete 4 rides again, and earn P821 in fares. Maintaining the weekly AR & DCR, with the Fare Difference Incentive, you would earn an additional P300 (P300 x 4 – P821).

And then outside of peak hour rides for the week, let’s say you earned P9200 in fares during Regular Hours. If you meet the week’s AR & DCR requirements, this would mean an additional P2,000 in Regular Hour Incentives!

Your week’s total incentives would thus be calculated as:

P2000 (Regular Hour Incentives)
+ P547 (Monday’s FDI)
+ P799 (Tuesday’s FDI)
+ P0 (Wednesday’s FDI)
+ P0 (Thursday’s FDI)
+ P379 (Friday’s FDI)
____________________________________

= P 3725 IN INCENTIVES ALONE!

In a nutshell, your incentives for the week will be the sum of each day’s peak incentive plus any off-peak incentive that you qualify for!*

*Note that the Fare Difference Incentives are also counted as incentives and are subject to withholding tax.

HERE’S MORE:

COMPLETE 5 TOTAL FRIDAY PEAK HOUR RIDES THIS WEEK BETWEEN 5 AM TO 10 AM
AND 5 PM TO 10 PM AND  YOUR GUARANTEED
PEAK HOUR AVERAGE FARE WILL BE
P350 FOR YOUR FRIDAY PEAK HOUR RIDES ONLY!

Here’s how it works:

Let’s say that these are your total peak hour rides on FRIDAY

Friday AM Peak Hours: 2 COMPLETED RIDES

Friday PM Peak Hours: 3 COMPLETED RIDES

Total Friday peak hour rides = 5
Qualified for the Weekly Morning Peak Hour Fare Difference Incentive? YES!

Friday FDI = 5 Rides x 350 – (Total Friday Peak Hour Fare)

Remember that you will still have to meet the minimum weekly Acceptance Rate (85%) & maximum Driver Cancellation rate (20%) requirements to be eligible for this difference.

 

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