As of today, April 6th, 2016, Uber has reduced rates on UberGO in Karachi and Lahore by up to 20%. This means that not only will riders pay less for their trips but driver-partners will earn more through increased demand.
Over the last year, it has been learned that the single most effective way to help driver-partners get more trips is to reduce prices for riders. Higher demand means driver-partners will spend more of every hour moving people, less time waiting around and therefore get more money.
Thousands of travelers across Pakistan use Uber to get from A to B while a score of drivers use the Uber app across Pakistan.
“We are committed to making Uber the most affordable option to move around and our experience shows us we can make that happen while making Uber the best possible app for driver-partners to earn a living,” reads the press release.
“While these 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,” it adds.
Speaking about the price cut, the General Manager of Uber in Pakistan, Mr. 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 kilometers between paying trips,”
He also introduces UberX and says, “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.
Uber has communicated these changes to driver-partners through dedicated focus groups across Karachi and Lahore.
Old UberGo fares vs New fares
- Old fares: 100 base, Rs. 6.84 per KM, Rs. 3.15 per minute, Rs. 150 minimum, Rs. 150 cancellation
- New fares after Price Cut:80 base, Rs. 5.59 per KM, Rs. 2.50 per minute, Rs.120 minimum