A contingent is a credit that is paid in advance and can be used for costs within a sharing offer. This credit is not purchased by individual drivers, but by the administrator for all drivers within a service. The administrator also decides whether and to what extent a monthly budget is available to the individual drivers.
When the contingency feature is activated, a validity period is also determined and thus the point in time at which unused credit expires.
The most common use of contingents is in the corporate environment. Therefore, we describe the feature below primarily using this example - although other use cases are of course also imaginable.
The feature is not exclusively limited to companies, but can also be used in various other use cases. Sharing offers are given more freedom in terms of designing the offer and pricing and, thanks to the feature, are able to offer their users budgets which they can manage directly and easily via the system.
The drivers themselves are happy about simplified payment methods, either by booking all business trips directly via the credit or by possibly having a budget available for private trips as well.
But the use of the contingent feature is also attractive for sharing providers (see scenario 2 above) themselves. Not only do they increase their user satisfaction with the newly gained options or even gain new user groups such as individual companies that require such an option. But they also benefit financially with improved liquidity and profitability. After all, they receive the revenue from the sale of credit regardless of whether the quota is actually used and completely consumed afterwards.
“We find the contingent feature to be useful in providing businesses with a way to administer their mobility budget in a predictable manner. The ability to prepay for mobility is a flexible way for businesses and their employees to access car sharing services. As a provider we look forward to explore this feature further, also as a marketing tool, to offer discounts when purchasing contingents, etc.”