There is an Hourly rate e.g. 6$ for 1 hour. means 0.1 $ per minute.
Then there is the km rate. e.g. 2$ per km.
After that, there is a Company Service Fee in percentage i.e. convenience fee e.g. 5%
and there is also a minimum fare to be paid even if going to the next corner. e.g 15$ minimum
And finally, there is a discount of promo % or flat number
Let's assume a parcel to be delivered which has a size and weight and requires 30 mins and will take a distance of 3 km
So the Calculation is.
Fare = Base Fare + ( hourly Rate time ) + ( Km rate km ) = 4 + ( 30 0.1 ) + ( 2 3 ) = 4 + 3 + 6 = 13$
Now, If there are parcel types and other options set from the Admin Panel like in the case of delivery Apps. Then those will be added.
13$ + 0.5$ for Size + 0.5$ for e.g. weight = 14$
Now, the Minimum Fare is 15$. 14$ is less, so the customer will be billed for 15$
Note: Above is the money that will be the driver earning from a trip.
Now comes a 5% convenience fee or the App owner commission on top of that, which is
15$ + 5% of 15$ = 15.75$
Finally, the person got a promo discount of 10% discount means
Note: The discount goes from the App owner's pocket.
15.75$ - (10% of 15.75) = 14.175$ = 14.18$ round is the final payment he can pay fully from Wallet / Card There is a difference between the estimate and the actual because you are not traveling men actual while testing. The hourly fee should be very less and the km fee should be the main fee. Then things will seem logical.