Sprig GO: Helping achieve a Pareto improving pricing approach and reducing delivery costs

A few months ago, we introduced delivery congestion pricing, with the aim of smoothing out our demand and allowing for the supply of drivers to meet demand for orders. However, we knew that raising prices to maintain a smooth delivery system would directly affect our customers, since they incur a higher delivery cost if they are ordering at the same time as many other customers.

In January we introduced Sprig GO, which takes a step towards alleviating pricing concerns by making our delivery system more efficient, and reducing delivery fees to our most frequent customers. Sprig GO prevents frequent customers from paying for congestion, which is caused by unforeseen demand fluctuations. After some analysis, we became even more excited when we realized that Sprig GO combined with congestion pricing has the potential to improve the delivery experience for every individual in our customer base.

In this post, we present why the combination of Sprig GO and congestion pricing can improve the monthly delivery experience for all of our individual customers. This can also be described as a Pareto improvement in our delivery system, since it allows all customers to experience a better delivery service, in contrast to our system without Sprig GO and congestion pricing.

Take a look at the complete version of the post here.