A press release has been issued by Uber on 6th April 2016, whereby, the company has announced reducing rates on UberGO in Lahore and Karachi by up to 20pc.According to the company, not only will this enable riders to pay less for their trips but driver-partners will earn more through increased demand.
The company strongly believes that the single most effective way to help driver-partners get more trips is to reduce prices for riders.
Higher demand translates into driver-partners spending more time every hour moving people, less time waiting around and hence, earning more money. The model follows similar strategy introduced in cities such as Nairobi, Kenya and Bucharest, Romania. The increase in rider demand meant payments to driver-partners using Uber went up.
The company claims to be committed to making Uber the most affordable option to move around while making Uber the best possible app for driver-partners to earn a living.
The company stated that while the price cuts are beneficial for riders, they are ultimately designed to help Uber driver-partners. 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.
Speaking of the price cut, General Manager for Uber in Pakistan, Safee Shah, explains, “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 kilometres 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.”
He further added, “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.”
With the introduction of UberX, riders will now have three types of rides available to them through the Uber app – Ubergo, UberX and UberAuto. This is in line with the company’s philosophy of providing riders with multiple options at different price points, and in doing so generating more economic opportunities for drivers-partners.
Uber has communicated these changes to driver-partners through dedicated focus groups across Lahore and Karachi, information sessions and email.
The Old UberGo fares were as follows:
Rs. 100 base, Rs. 6.84 per KM, Rs. 3.15 per minute, Rs. 150 minimum, Rs. 150 cancellation
The new UberGo fares applicable are as follows:
New fares after Price Cut: Rs.80 base, Rs. 5.59 per KM, Rs. 2.50 per minute, Rs.120 minimum
Uber’s mission is focused on helping people get a ride at the push of a button – everywhere and for everyone. The Uber network is available in over 450+ cities in over 75 countries spanning 6 continents.
