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Driver Pricing Policy and Bid Allocation Workflow

4 min read

1. Service Request and Bid Collection #

The bid intake and allocation process follows three mandatory steps:

  1. The customer creates and submits a service request through the Grunber platform.
  2. Available, verified haulers within the designated geographic territory receive an automated notification detailing the service request.
  3. Each interested hauler reviews the job details and submits an independent price bid through the platform.

2. Benchmark Average Calculation #

When a service request reaches a total volume of N bids, the platform calculates the arithmetic mean across all received submissions. This step neutralizes market distortions caused by unviable low bids or excessive overpricing.

  • Calculation Formula: Benchmark Average = (Sum of all N submitted bids) / N
  • Operational Example: If 20 bids are submitted for a project: Benchmark Average = (Sum of all 20 bids) / 20

3. Dispatch Priority and Hauler Selection #

To maintain consistent fulfillment and protect service reliability, the platform organizes qualified bids into two sequential dispatch tiers.

Primary Priority Group: Above Average #

The platform first identifies the 3 bids positioned directly above the benchmark average. These 3 proposals are queued in descending order, starting from the highest value:

  • 1st Option: Highest bid above the benchmark average
  • 2nd Option: Second highest bid above the benchmark average
  • 3rd Option: Third highest bid above the benchmark average

Secondary Contingency Group: Below Average #

If all 3 primary options decline, cancel, or fail to confirm service dispatch, the platform immediately activates the 3 bids positioned directly below the benchmark average. These proposals are also queued in descending order:

  • 4th Option: Highest bid below the benchmark average
  • 5th Option: Second highest bid below the benchmark average
  • 6th Option: Third highest bid below the benchmark average

4. Financial Structure: Billing, Payouts, and Platform Fees #

Once an assigned hauler is confirmed, the selected proposal becomes the Winning Bid. The transaction is settled according to the following financial model:

Customer Total Charge #

The customer pays the Winning Bid amount plus a 30% Grunber platform service fee.

  • Customer Charge Formula: Total Customer Payment = Winning Bid + (Winning Bid * 0.30)
  • Example: For a $1,000 Winning Bid, the customer pays $1,300.

Hauler Payout #

The hauler receives 70% of the Winning Bid amount, reflecting the deduction of the standard 30% platform intermediation fee.

  • Hauler Payout Formula: Hauler Payout = Winning Bid * 0.70
  • Example: For a $1,000 Winning Bid, the hauler receives $700.

Grunber Platform Revenue #

Platform revenue consists of the 30% customer surcharge combined with the 30% hauler service fee.

  • Example: On a $1,000 Winning Bid, Grunber retains $300 from the customer surcharge and $300 from the hauler deduction, resulting in $600 total platform revenue.

5. Fulfillment Failure and Customer Refund Policy #

If all 6 prioritized options (the 3 above average haulers and the 3 contingency haulers) decline, cancel, or fail to fulfill the scheduled service, the customer may select one of two resolutions:

  1. Relaunch the Request: The request is re-entered into the system for a new bidding cycle at no additional fee.
  2. Full Service Refund: The customer receives a refund of the total amount paid, minus a non-refundable 5% payment processing fee.

The 5% processing fee retention prevents speculative bookings and protects partner haulers from dedicating administrative time to evaluate non-genuine demands.

  • Processing Fee Retained: Total Customer Payment * 0.05
  • Refund Issued: Total Customer Payment * 0.95
  • Example: On a $1,300 total transaction, the processing fee retained is approximately $65, and the net refund issued to the customer is $1,235.

6. Market Balance and Compensation Philosophy #

This operational framework safeguards all participants in the Grunber network:

  • Extremely low bids frequently contain calculation errors. Underpriced jobs lead to inadequate hauler compensation, reduced service commitment, and elevated cancellation rates. While attractive to customers on price alone, they introduce substantial operational failure risks.
  • Exceptionally high bids produce healthy hauler compensation and higher platform commissions, but they create customer dissatisfaction and harm platform retention.
  • Prioritizing bids positioned closest to the market average corrects estimation errors. This mechanism provides customers with fair market rates, ensures sustainable earnings for haulers, and preserves platform service standards.

7. Price Safeguards and Benchmark Controls #

Grunber implements automated pricing thresholds paired with manual review procedures to prevent bidding irregularities:

  • Reference Values: Every service request displays an automated reference value visible to all participating haulers, establishing an objective price ceiling.
  • Review Threshold: If the average of all submitted bids exceeds the platform reference value by 100% or more, mandatory manual intervention occurs. Platform staff will contact haulers to evaluate why the submitted estimates deviate from expectations.
  • Resolution and Exclusion: If an elevated bid is caused by a typographical error or scope misunderstanding, the hauler is asked to submit a corrected bid. If the estimate does not represent an honest calculation error and fails to align with objective job requirements, that proposal is removed from the benchmark average calculation.