Uber Cuts its Prices by 30% in Lahore

Uber today announced that it is cutting rates for its UberGo service in Lahore by 30% starting tomorrow, i.e. September 1st, 2016.

Uber said that this cut in UberGo rates is announced after increased demand and popularity in the city.

Company didn’t comment on how it will tap the demand that will only grow further after the rate cut, as it is reportedly missing a good number of rides in the city, especially during peak hours.

This is happening despite the fact that over 1,000 drivers started using Uber technology for additional revenue stream with-in last one month only.

Old fares vs New fares

Uber

Zohair Yousafi, Head of Expansion for Pakistan, explains, “We are excited about our growth in Lahore and we are committed to making Uber the most affordable and convenient option to move around. On the driver side, we are confident that increased demand will also mean higher earnings”.

“After years of experience, we have learnt that price cuts boost demand so more people are requesting more rides with Uber, meaning drivers will spend more time with riders in the backseat and less time sitting idly waiting for a request. We reduced fares in cities such as Cairo, Egypt and Lagos, Nigeria and saw that these cuts had resulted in an improvement in the volume of rides requested on the Uber ¬platform”, said Mr. Yousafi.

Despite rate cut, the base charges, cancellation charges for UberGo are going to remain the same.


  • Hamid

    Meanwhile at the end of the month you hear Uber is starting services in Islamabad from 1st : every month!

  • Waseem Saleem

    Bad Price for drivers, it will cut the half of drivers as 7/Rs Per Km not affordable for drivers point of view. Obviously for riders it’s Good. But I think such Change in Policies Bad for business. After Becoming # 1 in lahore, Just like that Cut Rates to Half. will de-value service for Drivers and In end Careem or Easycab will rise.
    Why I am talking for Driver Point, Because with Cut in Drivers Uber Value decrease, I was Happy to see Many People always referring Ubers. But Now I don’t think people will do. 1800CC Car, 1Ltr Petrol= 10 Km avg. Now Vendors like me who have few cars and Pay for Drivers. will be moving to Careem.
    Anyway, it’s Uber Bad Move.

    • Awais Yousaf

      but i think 6.84 will be for the base category for cars such as Vitz,Swift. Secondly increased demand would cover the margin don’t you think?

      • Waseem Saleem

        Not at all, I’m a vendor, I have 3 cars with them, So you can calculate by following :
        8 Rides Per day max for each driver, which was giving estimate 1800/Rs , from which 800/Rs for Petrol. You not getting Point, Cars Run on petrol , Oil, Maintenance, Drivers, Car Washing, Accidental covering. So Avg car gives 11-12/km per Ltr, Now assume, You giving 7/rs per Km, means you giving 70$ for 10/km. So the other charges, base charges etc only gives cash for Car maintenance other stuff. Not Any REAL Money Earning.
        No Uber Driver can save much money now. So it’s Going to be Fall for Uber.
        Demand Increase fine, but tell me, if 200 New Rakhsha starts in Lahore, which they start charging 20/Rs for 3 Km (Anarkali to Mao College)? Obviously not, They charge 80/Rs and Even demand whatever they will keep avg 80/Rs for such rides. So In my experience Uber Going to Fall down with such rates.

    • Aneef Izhar

      I guess now there will be increased Price Surging after this price decrease.

  • Ali

    Uber charges 3 times in surge prices….. Thats too bad..

    • Shahid Saleem

      supply… meet demand…

      • JIgr

        What does that mean. I am a paindu, please explain to me.

  • Ali

    Uber and careem tried both of them both are good. I have both Uber and careem app installed in my phone.

  • Ibbad Ashraf

    30% cut is a bit too much, should have decreased 10 to 15 percent instead, new fares will be on par or even less than auto rickshaws fares. a rickshaw cost around 1.80 Lac and most simple and economical suzuki cost more than 7 lacs. How is it gonna work.

  • UberInsider

    lol @ “Uber said that this cut in UberGo rates is announced after increased demand and popularity in the city”. Its the other way round.

    Basically their market have saturated and there is a scenario of increased supply vs less demand which means almost no earning for everybody. They have done this to stimulate some more demand and take share of careem and A taxi. They will also start advertising in Lahore.

    • Mubashir Ch

      hello, How we can contact to uber from airport.

      your help line on which we can call for vehicle.

  • Bhatti

    Bad move from drivers’ point of view…. Rs.7/Km does not seem feasible even for economy cars… Car cooti ho ya bari hoo…petrol aur maintenance mangati hey!!

    • hussain

      Dont know what tactics are they using as they didnot cut a single penny from their 25% share . What type of marketing is this as you are not saving your vendor . If you want to save your interest why for the partners same like . Truly a bad and disastress tactic . Uber should review it as if partners are there then uber will earn . Ager boht ziada competiotion aya howa hai tu apney pas sey partners ko compensate karaien na key un ki price cut down ker key .

  • Abbasi

    I use Grab here in Malaysia which has fixed amount option as well which relieves from any traffic jam price shoots and me as well as driver has exact idea how much has to be paid.

    Uber should also plan like this otherwise drivers will play the trick of opting longer routes.

  • Kazim

    Fair New fares