Per-km vs per-trip vs monthly-slab billing for hired vehicles: which to use?
Use per-km when the platform pays for distance run on contracted routes, per-trip for fixed-route runs, and monthly slab when a vehicle is dedicated for a deployment period (paid by working days, with extra-km beyond the slab billed per-km). The contract decides which — and getting the slab/deployment-day and GST math right is where Excel slips.
The three models
Per-kilometre
Rate × contracted kilometres for the route. The billed km is the contracted route distance, not the odometer. Common for adhoc and variable e-commerce line-haul.
Per-trip
A fixed amount per run on a fixed route. Simple, but doesn’t flex with distance.
Monthly slab (dedicated deployment)
A monthly rate for a vehicle dedicated to the platform, prorated by working/deployment days, with kilometres beyond the slab billed at an extra-km rate. Quick-commerce and B2B feeders often use this.
Where it goes wrong
Mixed ÷30 and ÷31 proration in the same invoice; deployment-day rules applied inconsistently; GST treatment differing by contract; tolls double-counted or missed. Each is a small Excel slip that ends up in an invoice to a large retailer.
Rent vehicles to Flipkart, Amazon or quick commerce?
TFTOne does this end to end — per-km/slab billing, platform MIS reconciliation, and FASTag toll claims. Book a demo and we’ll regenerate your last month’s invoices against your originals.
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