Carpool Rides - A Micro Case on Pricing
2021 was the year when the second COVID-19 wave struck India. During the time, many people actively chose to use personal transport mediums such as cars to commute. Dr. KB was one of those individuals. Instead of commuting to work by the more convenient and cost efficient local train network, KB chose to drive to work everyday. While COVID 19 was partly the reason for driving to office everyday, KB believed that having a car with him in Navi Mumbai where he worked offered him greater flexibility in terms of work hours and helped him indulge in his travel adventures.
By September 2021, KB had made friends with many faculty colleagues and knew exactly who lived en route his way home. First, there was his good friend Dr. Manu. Dr. Manu stayed close to the campus and preferred to walk to campus on and off. However, there were those days in which he wanted to just ‘go home and crash’. This meant that a ‘lift’ part of the way towards home was a welcome gesture. While KB and Dr. Manu carpooled on and off during the early days, over time, the drive home became some sort of a ritual. Both of them looked forward to the ‘coffee stops’ at the nearby South Indian food joint, and trips to the market to buy fruits and vegetables before parting ways for the day. Dr. Manu also spoke Tamil, KB’s mother tongue, and was quite well versed in the pop culture references and jokes that KB liked, especially since KB had few avenues to talk in his native tongue otherwise. Furthermore, Dr. Manu and KB went to the same college (albeit at different times). This meant that they knew the same people and had different stories to share. This story sharing was something both of them enjoyed.
Around October, an admin staff Mr. GR was recruited into office. GR was an old man. seventy two going on seventy three. At the request of his old friend and the dean, Dr. PA, he decided to jump on his feet and come over 1000 km away from his native place of Bangalore. Dr. Manu and KB had both known GR, but as students, and had great respect for him. However, it was only recently that they began knowing him as colleagues.
Dr. AP, who lived midway between office and KB’s home, preferred traveling by public transport until this point in time. On some occasions in the past, KB did drop him at home, but for the most part, Dr. AP was a calm and reserved person who preferred listening to music and vanishing into the crowds of local Mumbai trains. However, when Mr. GR entered the scene from Bangalore, he found himself to be located not more than a few blocks away from where he lived. For a few days in October, the two of them came to campus together. For some reason, Dr. AP had a fatherly affection for Mr. GR and took excellent care of him.
And then there was Dr. VS. Dr. VS was a very soft spoken lady who had twins. She was quick on her feet and sweeped away people with her sense of humor. She also lived close to where Dr. AP and GR lived. As the pandemic intensified, she began to dislike traveling by public transport and preferred to use private arrangements. There were times when she had merrily driven all the way from her home to the office. But the angst caused by the traffic in Mumbai dissuaded her from hitting the roads herself.
Over time, and given the similarity and timing and geographical choices, an organic team emerged. Dr. Manu, Dr. AP, GR, and Dr. VS were all part of a berry band of professionals who chit-chatted about research methods, the difficulties they faced in class and challenges of teaching certain difficult concepts. As the pandemic intensified, KB felt that a carpooling arrangement would help everyone of his colleagues. In addition to reducing their carbon footprint, this also helped them bond as friends. Thus began another awesome adventure in KB’s life. Found below is a road map of the various stops KB was making on the way home.
Figure 1: The Road Map from Office to home.
By the start of November, KB began enjoying his rides back home. He even believed that they were so interesting that a situation comedy show based on their car rides could one day be developed. Discussions on papers, cases, and birthday celebrations transpired freely within the metal frame of the old red Ford that he drove. And the drive back home was something that everyone began looking forward to. There was also this one occasion where KB decided to race in the traffic to overtake the office bus used by Dr. VS’s husband, which is a story for another day.
By the end of November, when Dr. VS had just completed carpooling with the merry band of professors for almost a month, she popped an interesting little question. “How much should I pay you for the car drive KB?”. This left KB confused, but at the same time, this was an idea that he wanted to think about. If KB decided to charge for their drive back home, how should he go about it? Please advise him.