Drivy has grown a lot over the past few years, serving over 2 million users in 6 countries, and generating revenues for 35,000 owners. In order to continue providing the best experience for all our customers, we’re updating our pricing model for all cars starting 11th December, 2018. This migration will be progressive and you will be notified when your car(s) have been updated.
You’ll no longer pay the insurance fee - it will be charged directly to drivers
Since Drivy started 8 years ago in France, owners set the total price that drivers paid. 30% was then deducted to pay for insurance, roadside assistance and the Drivy service fee.
Following the change, you'll have a new daily price that will no longer include insurance fees. These fees will instead be charged directly to drivers, therefore your new price will be lower than it is now.
You don't need to do anything, we'll update your price for you.
Drivy service fees will now be split between owner and driver
The Drivy service fee contributes to both the operation and improvements of the features on the platform. Previously it was paid only by owners, but from the 11th December this will be split between both drivers and owners:
A service fee of 21% will be deducted from your new daily price, meaning 79% for you.*
Drivers will be charged a trip fee of £3 per rental.
The great news is that you’ll receive a discount on your service charge and it’ll be only 18%, if you’re a Drivy Open owner, or if you schedule Drivy Open to be installed by the end of January. This is a rate that we previously only offered to professional owners with more than 10 cars. Find out more about Drivy Open here.
With this change, we still have a lower take rate than other players in the market and remain competitive.
How the new pricing structure will works
While the new pricing structure means there is no minimum pricing level, overall it will mean that prices drivers pay on the platform will increase slightly during the migration.
Here is a breakdown of a £37 one-day rental after the pricing update:
You’ll earn more for additional mileage driven
The above example does not include extra fees paid by drivers. We’ve increased the earnings you get per additional mile driven on your car by about 20%.
The detailed list of additional mileage earnings can be found here.
Why we’re doing this: A better service, more rentals
Our updated service fee allows us to invest in improving your experience and ultimately, increase your earnings.
Marketing: To bring you more customers, we’re increasing our marketing, particularly for weekday usage and off-season periods.
Trust and safety: We’re improving our driver vetting process and growing our claims team in order to reduce the number of incidents and handle them faster.
Customer support: We’re expanding the team, building tools to provide better support to ensure quicker response times and deliver a better quality of service for both drivers and owners.
Drivy Open: We’re continuing to invest heavily in our technology and maintain free installations and deinstallations (worth more than £170 per install).
Thank you for taking the time to read up on our new pricing structure. We aim to be very transparent with you about how we grow the platform, hence the rather long email! Please feel free to get in touch if you have additional questions.
Frequently Asked Questions
Should I change my prices?
No, you don’t have to do anything with your price. We’ll update your price for you so that your revenues barely change on average. We strongly recommend following our price suggestions to avoid your car being too expensive, which could decrease the demand for your car.
The guidelines to remember are still the same: lower your price by a few pounds if your occupancy is low and increase your price a bit during high seasons, like the upcoming Christmas period. You can do the same for weekdays and weekends, and the price calendar is the perfect tool for you to do so.
Why is my net earning on a rental a bit lower when I compare it to the previous system?
First, after several years of little to no increase, our insurance partner increased the price for insurance.
Additionally, the net earnings you might calculate don’t include all extra fees, such as your earnings per extra mile, which have increased.
Drivy is also taking a slightly higher commission to reinvest it in marketing, quality assurance, customer support, technology, and the visibility of your cars. We believe this will bring more drivers to the platform and grow your revenues per car over time. In all cases, we know that it’s the best way to keep you engaged as our partners. To compare, the previous take rate on your price excluding insurance was 19.5%. From 11th December, it will be 21%.
What will happen to the rentals that are already booked?
All rentals booked before this new price structure is rolled out will keep their original pricing, including those cases where the rental is extended or modified.
What is the exact date of the change?
We will be releasing this change progressively, starting on December 11th. However, to make sure that this price change is bug-free for the 50,000+ cars on the platform, we will activate the new pricing in successive batches over the following days or weeks. When your car(s) get(s) updated to the new pricing model, you will be directly notified. You don’t have to do anything.
How does the service fee work on the driver side?
The duration of the rental won’t affect the driver service fee, which will always be priced between £2.5 and £3.5, for an average of £3 per rental.
I’m a professional owner. How does this change how I calculate VAT?
VAT should still be calculated based on your daily price, but because your price will no longer include insurance (and so will be lower than the total price of the rental), you will be paying less VAT. Your VAT invoices in your payment page will be updated accordingly.
How will my earnings for extra mileage differ?
The fee per extra mile used to be included in the total rental price, from which the service fee used to be deducted. We simplified this so that your extra mileage earnings remain separate from your new price and service fee, so you’ll earn more.
In the UK, your new earnings per extra mile will be fixed at the following rates:
£0.12 for a Category Eco car
£0.14 for a Category Comfort car
£0.20 for a Category Privilege car