Uber has decided to reduce its rates in Karachi and Lahore by 20 percent from 6th April 2017. This will not only cause the riders to pay less for the trips they are taking but will also let the driver-partners earn more money because of increased demand.
Uber released a press statement which said, “Over the years, we’ve learned that the single most effective way to help driver-partners get more trips is to reduce prices for riders.”
Higher demand means that the drivers will be spending more time in getting rides and moving people around. This will reduce their waiting time thus, causing them to make more money.
The statement also said, “This is exactly what happened when we reduced fares in cities such as Nairobi, Kenya and Bucharest, Romania. The increase in rider demand meant payments to driver partners using Uber went up.”
The price cuts in Pakistan are as follows:
Base Fare: Reduced to Rs.80 from Rs.100
Fare According to Distance Covered: Reduced to Rs.6.84 per KM from Rs.5.59 per KM
Fare According to Time: Reduced to Rs.2.50 per minute from Rs.3.15 per minute
Minimum Fare: Reduced to Rs.120 from Rs.150
There are hundreds of thousands of riders relying on Uber for commuting and thousands of driver-partners using the app for earning money.
Although the price cuts seem beneficial for the riders but they have been designed to benefit the driver-partners ultimately, according to the statement. It said, “This is because a driver-partner who is logged into the Uber app is doing one of three things: sitting idle while waiting for a trip, on their way to pick up a rider, or carrying a rider to their destination. Only the third scenario is when a driver-partner is earning a fare.”
General Manager of Uber in Pakistan, Safee Shah, explains the statement, “We are committed to driver-partners and that Uber remains an attractive option for them – without them, we can’t help keep our Pakistani cities moving. We believe these price changes will help increase demand – meaning more paying passengers in drivers-partners vehicles and less dead kilometers between paying trips.
And while each city adjusts to the new prices, we are putting in place payment guarantees for driver-partners. Partner economics will be closely monitored, every day, to ensure that drivers using our app continue to thrive.”
Apart from the reduction in the fares, Uber has also introduced its UberX cars in Pakistan.
“In line with our global business we will be introducing a new category, UberX, wherein riders will have access to more premium cars at reasonable prices.”
After the introduction of UberX, the riders will have access to three different kinds of rides available to them through the ride-hailing app:
According to Uber officials, this is in line with their philosophy of providing multiple options to the riders at different rates and while doing so, generating more earning opportunities for their driver-partners.
The changes have been communicated to all the driver partners across Lahore and Karachi through dedicated focus groups, information sessions, and emails. With the new prices and the introduction of multiple options, Uber hopes that more people will opt for their service and would choose to leave their cars at home.
- uber-deals: The Independent