Post by AirGarage

We put one of our oldest assumptions on the chopping block. AirGarage has always prorated parking, so drivers are only paying for the time they use. It felt like the right solution. But "feeling right" isn't a reason to skip testing. So we ran one. Three locations, 11 weeks, 3,414 drivers. We tested prorated billing against two alternatives: charge the full hourly rate and keep the difference, or charge full price and credit the unused time back to the driver's account. That last group had the lowest retention of all three. Turns out, telling a driver they overpaid, even while handing them money back, just highlights the overcharge. 92% of credits went to drivers who never came back. The full breakdown, including what non-prorated billing did to reviews, can be found here: https://lnkd.in/g4i6eZ5A