One of the biggest challenges of logistics in the Philippines is the large imbalance between the supply and demand for delivery vehicles. The supply of delivery vehicles is fixed, yet the demand varies greatly depending on the time of year.
For example, the Christmas season is a period of remarkably high demand for delivery vehicles. To a similar but lesser extent, the last week of every month is also a period of very high demand. On the flip side, the months of January and February and the rainy season are typically low demand seasons wherein many drivers and delivery vehicles are underutilized.
During these periods of extreme imbalance between supply and demand, our app may adjust pricing upwards or downwards to:
(a) encourage more drivers and truckers to take more bookings during high demand periods. In this case, the pricing in the Transportify App will be HIGHER. The increase in price will be displayed as a “Demand Adjustment.”
(b) encourage more customers to make bookings during the low season, thereby providing work for drivers and truckers who would otherwise be idle or underutilized. In this case, the pricing in the Transportify App will be LOWER. The decrease in price will be displayed as either a “Demand Adjustment” or a “Special Adjustment” or both. The difference between the 2 adjustments is that the Demand Adjustment lowers the price while the Special Adjustment is a discount from Transportify directly to the customer.
The algorithm that determines the price adjustments is based on historical data.
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