Taxi Driver Does Pay What You Want... And It Works

from the funny-that... dept

We recently wrote about successful taxi cab operators offering free service in Tampa, Florida (pissing off existing cab companies), and it appears that the idea is spreading somewhat. Matt Cruse alerts us to a story in Essex, Vermont, involving a guy offering "pay what you want" taxi rides, and finding that people are always willing to pay a reasonable rate. Now, I'll admit that I'm not a huge fan of "pay what you want" models, which seem more like give it away and pray, rather than having a real business model worked out (which makes me wonder if it's sustainable long term). But, in the meantime, it's certainly yet another example that "free," can be a useful tool as a part of a business model.
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Filed Under: business models, free, pay what you want, taxi


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  1. identicon
    hegemon13, 6 Aug 2009 @ 7:59am

    Depends on the availability

    This seems like a great idea in a city where cabs are plentiful and cab drivers frequently find themselves with empty seats. However, in many cities, cabs are a scarcity, so the "pay what you want" model does not make a lot of sense to me. This is an example where the operator is already selling a scarcity, so why give it away?

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