Demand will determine the price of the home deliveries of Kotipizza in May. During the trial, dynamically-priced home deliveries can be ordered from Kotipizza's online store. In this way, the Kotipizza chain will serve its home delivery customers more flexibly than before.
Dynamic pricing means pricing in which the price is formed on the basis of demand. It has been familiar to many consumers for several years from the buying of flight tickets and hotel bookings. In the last few years, dynamic pricing has become more common across the world in other fields too. Dynamic pricing is particularly popular in online stores, of which Amazon is a well-known leader. Dynamic pricing is also becoming more common in other fields, such as ticket sales for events, and the sale of apartments and taxi journeys.
Dynamic pricing has been tried out in the restaurant sector during the last few years, but Kotipizza is the first Finnish restaurant chain to try it out in association with home deliveries. The trial will be carried out in cooperation with the Finnish dynamic pricing service company Priceff Ltd. As a trailblazer in the field, Kotipizza will offer its customers home deliveries with a price that changes at five-minute intervals on the basis of demand. The price is formed on the basis of demand, varying between €0.10 and €5.90. So the maximum price of a delivery is always the normal price for a delivery, i.e. €5.90. The pricing will be in effect during May from Monday to Wednesday, from 10 am to 4 pm.
"The pricing trial for home deliveries supports our strategy, which emphasises digitality and delivery, and offers an excellent opportunity to present the possibilities of dynamic pricing to the franchisees of Kotipizza and their customers. At its best, pricing on the basis of demand will reduce food wastage and enhance the home delivery of our restaurants. I believe that we can learn a lot from this trial," says Johanna Kuosmanen, Customer Experience Manager at Kotipizza Group.
"We're happy that we can try out an innovative pricing model together with Kotipizza. Dynamic pricing solutions are in use in the restaurant business abroad and we're proud that we now get to test it in Finland," says Tiina Laisi-Puheloinen, Managing Director at Priceff.
