Valley-based rideshare service guarantees no surge pricing through Spring Training

GLENDALE, Ariz. — With several major events in the Valley at the end of January and the start of February, the Valley will be swarming with people in need of rides to get around town, marking one of the busiest times of the year for rideshare companies.

That means services such as Uber will likely bring back “surge pricing,” which is when rideshare companies increase rates, sometimes drastically, in areas and times of high demand.

One Valley-based rideshare service though, said it’s instead giving its customers a guarantee that rates will stay level, despite the high demand expected as the Super Bowl, Pro Bowl and Phoenix Open bring hundreds of thousands of visitors to the Valley.

Total Transit, based in Glendale, Ariz., is the owner of the Discount Cab Company and in October last year launched its own rideshare program that utilizes smartphone hailing, payment via phones, GPS tracking and many other features that have made some rideshare companies worth billions of dollars.

Stan Sipes, the director of business development for Total Transit, said one thing that will set them apart from other companies though, is its surge protection guarantee.

“We wanted to give the marketplace the confidence that regardless of the service they request through us, they’re going to get the price that anybody’s going to get,” he said.

Rideshares have grown considerably in popularity and Sipes said since the launch of Total Transit’s mobile app where users can access both its cab and rideshare services, about 50 percent of the mobile app traffic is now for rideshares.

And with prices roughly 30 to 40 percent cheaper than taxi services, Sipes said that has certainly helped fuel its growth.

When it comes to surge pricing, companies such as Uber say the goal is to incentivize more drivers to come to high demand areas because the fare — and the driver’s subsequent cut of that fare — will be higher.

Sipes however, said the reason Total Transit can avoid raising rates is because between its cab and rideshare services, the company believes it has plenty of drivers to handle the demand.

“We’re nearing 200 (rideshare) drivers at this point that are out there, that are one our network, and we’ve got well over a hundred others that are on the waiting list,” he said.

The plan is to get those drivers on the waiting list checked and ready to be on the street in time for the big events coming to the Valley in the next few weeks, Sipes said.

Those drivers must first have their vehicle inspected and pass a drug and background check though, before they can receive commercial liability coverage by Total Transit and begin driving for the service.

Even after the Super Bowl, Pro Bowl and Phoenix Open are gone, Sipes said Total Transit expects to see continued high demand over the next few months as tens of thousands more people will come to the Valley for Major League Baseball Spring Training.

Sipes said the guarantee against surge pricing will continue at least through then end of the Cactus League games.

“We’re not going to be surging the price based on higher demand,” he said. “We believe we’ve got at this time the number of vehicles and drivers to provide good service and we’ll do the best we can, but we also in addition to that just wanted to release this surge price protection guarantee at least through Spring Training.”