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
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.