Climate-Adaptive Pricing: A Strategy for Resilient Logistics

Innovation is often born from environmental necessity. As a strategist, I look at how external variables, like climate must be integrated into SaaS pricing models to ensure business continuity and fairness.

Product Requirements Document

Executive Summary

This feature introduces a dynamic price surcharge during high heatwave conditions in peak afternoon times to incentives delivery partners and encourage customers to order early before the peak afternoon. The surcharge will be transparently communicated to customers and delivery partners, ensuring a smooth and fair experience for all users.

Objectives

• Customer Awareness: Clearly inform customers about the additional surcharge due to heatwave conditions and encourage them to order food early before the peak afternoon.

• Delivery Partner Incentives: Ensure delivery partners are compensated for working under extreme weather conditions.

• Operational Efficiency: Reduce the deliveries during peak hours and shift them to before the surcharge period, effectively managing daily orders without seeing reduction in daily orders.

Key Features

• Dynamic Surcharge Calculation: Automatically calculate and apply a surcharge during specified heatwave conditions in a specific area.

• Notifications: Inform customers and delivery partners about the surcharge through clear, in-app notifications and encourage the customers to order before the surcharge period is applied.

• Transparent Pricing: Display surcharge details prominently in the checkout process and order confirmation.

Success Metrics

• Customer Acceptance Rate: Percentage of orders placed every day from the time of notification released about surcharge being apply till the surcharge period is reduced.

• Delivery Partner Satisfaction: Survey scores and feedback from delivery partners regarding the increased earning and satisfaction of delivery partners.

• Operational Efficiency: Impact on deliveries orders at the surcharge period without reducing the daily order count.

User Stories

1. Customer User Stories

   • I want to be notified about the surcharge in advance at the start of the day so I can plan my food.

   • I want to be notified about the surcharge before placing an order during a heatwave, so I understand the additional cost.

   • I want to see a detailed breakdown of the surcharge in my order summary, so I know exactly what I am paying for.

2. Delivery Partner User Stories

   • I want to receive additional compensation for delivering during high heatwave conditions, so I feel motivated to work during peak hours.

   • I want to be notified about the surcharge and additional compensation for specific orders, so I can make informed decisions.

Functional Requirements

1. Weather API Integration

   • Integrate with a reliable weather API to monitor real-time heatwave conditions and advanced notifications across users.

   • Define thresholds for high heatwave conditions that trigger the surcharge based on different regions.

2. Dynamic Pricing Logic

   • Implement an algorithm to calculate the surcharge based on weather conditions and peak hours.

   • Ensure the surcharge is dynamically applied only during the defined heatwave conditions and peak afternoon hours.

3. User Interface Changes

   • Home Screen:

     • Add a notification banner & Live Notification informing users about the surcharge during heatwave conditions.

   • Restaurant Selection Screen:

     • Display a special note indicating the surcharge when applicable.

   • Checkout Screen:

     • Show a detailed breakdown of the surcharge in the order summary.

   • Billing Details Screen:

     • Include the surcharge details in the Billing details.

   • Delivery Partner App:

     • Notify delivery partners about the additional compensation for specific orders during heatwave conditions.

     • Include the surcharge details in the earnings page.

Notifications and Alerts

• Send push notifications and live notifications to customers informing them about the surcharge during high heatwave conditions.

• Release notification banner and live notifications before the surcharge period is starting.

• Ensure the time shown on notification is dynamically updated on a daily basis and not make frequent updates in real time so users can plan their food delivery accordingly and only place order in the emergency.

Alert delivery partners about additional compensation when accepting orders during these times.

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