Introducing an improved Pricing Model
We are introducing a Pricing Model for all Wolt Courier Partners in Wolt Denmark. There are five main points to mention regarding the Pricing Model: Upfront pricing, Pay for pickup, Estimated route distance, Reject button and Simplified earnings.
Today, less attractive tasks are rejected simply because you might feel that the effort needed for that task is not worth the fee.
By better matching the fee with the effort needed, the tasks will hopefully be accepted quicker making our service more efficient and minimising delayed orders and dissatisfied customers. In the future, we’ll also be able to account for difficulty of finding venue/customer locations, weather, type of order, and other variables, that can affect the effort needed to complete the task.
Ultimately, we want to make all tasks equally worth your time and effort.
How does the Pricing Model work?
You will see the fee you can earn for each delivery task before you accept or reject it.
Pay for pickup
You will get pick-up distance fee for the way you travel from where you accept the task.
Estimated route distance
All distance fees will be based on the estimated route distance of each task.
You can reject all tasks – including bundles, without contacting support or waiting for it to disappear.
We have simplified the earnings overview in the Partner app, so it’s more compact and transparent.
In addition to pickup and drop-off addresses, you will start seeing the task earnings for each delivery task before you accept or reject it. In a nutshell, this means that you will have a better chance of quickly evaluating what each task is worth. We aim to make sure the earnings offered for a task better reflect the actual effort needed to deliver that order.
When a task pops up, you will be able to see the offered task earnings by Wolt, but any tips related to the task will be added after. This feature has been requested via our courier partner satisfaction surveys for a long time, and we hope it will make it easier to decide which tasks to accept!
Pay for pickup
In the former Payment Model, you were only payed for the distance between the venue and the customer. Now you will also be compensated for the distance between you and the venue, when accepting the task. It means that you will now be compensated for the entire distance from accepting the task to delivering it to the customer.
We know that this is a feature that also has been requested from you for a long time in our quarterly satisfaction survey – so we are happy to announce that you will be paid based on both the drop-off distance to the customer as well as the pick-up distance to the venue.
Estimated route distance
In the previous Payment Model, you have been compensated for distance in straight-line measures. Now you will be compensated for distance based on a pre calculated route. This means that when receiving a task, a route is calculated in the navigation section of the app.
This will prevent situations where a straight-line distance across a river or something similar, where the distance would be much shorter than the calculated road distance. We hope this will create a more transparent way of looking at distance when delivering with Wolt.
The earnings screen in the Wolt Partner app has now been simplified. Meaning the earnings breakdown in Finances tap will be simplified and easier to understand and more transparent. You find it in the menu in the top left corner, which is the one you can see after completion of a task.
The earnings breakdown is removed and distance, base and other earnings components are rolled into a simple single ‘Task fee’. The result is a payout page summarizing your completed tasks in a more compact and clean view.
Frequently asked questions
Why is the pricing model being changed?
First of all because we want to accommodate a recurrent wish from you. We call it a fair pricing model because it reflects a fair calculation of earning and distance. We want to make all deliveries worth your while.
We want to make sure the earnings offered for a task better reflect the actual effort needed to deliver that task, such as the estimated route distance, the weather during delivery, the type of order and much more. To make all of this possible, we have to move away from the fixed task fees and update our service agreement.
The ultimate goal is to make each task equally attractive for you to accept and you will receive all the information you need each step of the way.
Will my earnings drop?
Some of you will experience an increase, some will experience a decrease in the task fee. With the new pricing model, task fees will be more flexible and match the effort required to deliver each specific task. This is to ensure that factors such as estimated route distance, type of order and weather can then be taken into account. What this means in practice is that for some tasks the earnings might be less than with the current model while other tasks might be more.
As we introduce estimated route distance some tasks will offer greater earnings and some - mainly bundle tasks - less. Your overall earnings won't be affected. We will also add pick-up fees which will have a positive impact on the fees.
You can always see your offered earnings for any specific task before you accept or reject it.
Is Wolt just doing this to save money?
The aim is to make the task fees more flexible and match the effort required to deliver each specific task. This is to ensure that factors such as estimated route distance, type of order and weather can then be taken into account. What this means in practice is that for some tasks the earnings might be less than with the current model while other tasks might be paid more.
Wolt is, however, hoping to reduce costs by becoming more efficient. With these changes, fewer tasks will be rejected which will cause fewer delays and make our operations run more smoothly. Today, less attractive tasks are rejected simply because some courier partners feel that the effort needed for that task is not worth the fee. By better matching the fee with the effort needed, the tasks will be accepted quicker making our service more efficient and helping us save money on expenses like customer refunds for delayed orders.
How can I know what I will earn once you update the fee model?
The new features will make it easier for you to know the fee for each task. You will be shown the full fee upfront before you accept or reject it. (Note: tips will be added on top).
As we are moving towards pricing each task individually, we will no longer work with a base and distance fee to show. Distance, base and other earnings components are rolled into to the single ‘Task fee’, and will not be visible as a separate amount under “Finances” tab in your Partner app. We do this to simplify your earnings and make it easier to understand.
What if I want to continue delivering with Wolt on the old terms?
We hope you will give this new model a try and see how your earnings develop. Then you can decide for yourself if you want to continue delivering with us. It will not be possible to continue on the old agreement once the new addition comes into effect.
We’ve put a lot of work into rebuilding our earning model, which will result in more fairly distributed earnings for all courier partners, and in fees that are better aligned with the effort needed for a specific task.
How are bundle orders being paid?
Bundled orders will also be paid based on the estimated route distance between the pickup location(s) and delivery location(s) instead of just the straight-line distance from the pick-ups to each drop-off.
Because we are introducing a fee for pick-ups as well, and as estimated route distances are longer than straight-line distance averages, the distance fee will be dynamically priced as everything else in the Pricing Model.
This is an example of how a bundled order will appear in the app:
The below image shows how the fees are shown; the courier is offered an additional €2,50 for the second delivery and an additional distance of +0,4 km on top.
Please note that the image is just a hypothetical example 👆
Our overall aim is that your earnings will not be affected and with these changes, you will see the fee and the details of the task right away when the task is offered, so you can quickly decide for yourself if you think the task is one you want to accept. Again, the goal for us is to make every task equally attractive.
Do I receive a weekend bonus?
Weekends are our most busy time of the week, and yes - as a part of the Pricing model, we will continue to offer increased fees 💰
Due to the fact that the Pricing Model is dynamic, the earnings possibilities will be higher in the peak hours in the evening and the weekend of course. This means that you can catch more orders to deliver in the weekend between 17:00 and 20:00 on Fridays, Saturdays and Sundays! 🔥
In short, when we expect a higher demand - you can expect better earnings opportunities as well. And in the weekends, we have many hungry customers ordering Wolt which means that we receive a lot of orders for you to deliver throughout the day compared to the weekdays! 📈
You can get more tips & tricks on how to optimize your earnings right here 🚀
Can you give me a breakdown of the payments?
We are updating the Pricing Model so that the earnings for each task will be better matched with the effort needed.
- Because instead of the fees being a fixed amount, they will be individually determined for each task.
- For example there will be no set price for driving 1,5 kilometers (distance fee). The effort it takes to drive that distance depends on whether it is over a steep hill or on flat city streets; and whether it is sunny or it rains. The distance fee for 1,5 kilometers will therefore be higher or lower for any given task depending on these factors.
- The good thing is that couriers will always see the task price before deciding if they want to accept it.