Careem Cuts its Prices by 31% in Lahore
1 year ago
Following Uber, Careem has just announced a 31% cut in its economy car fares for Lahore. Rate cut will be applicable on per KM charges, while base charges and cancellation charges are going to remain the same.
Careem said it also reduced the “minimum charges” for Lahore city.
Rate cuts are applicable for Careem economy cars only.
New Rates for Careem in Lahore:
- Per KM charges for Careem Economy will be Rs.11/km down from Rs.16/km
- Minimum fare has been reduced to Rs.150.
- The waiting charges have been brought down to Rs. 290 from Rs. 330
- The base rate of Rs. 100 for NOW & Rs. 250 for LATER shall stay the same.
- New prices for Careem in Lahore are effective immediately.
Careem has said that the change in per kilometer charge will impact the total fare and make the service even cheaper than a rickshaw.
It maybe recalled that Careem had revised its tariffs in Pakistan just last month.
It appears that competition is coming into play and is benefiting the consumers, but as we have seen with other sectors lowering prices due to competition and ending up with decreased service levels and degraded user experience.
We will have to see how this price cut is going to impact the services that Uber and Careem are offering in Lahore.
We have, by the way, heard that drivers aren’t liking the price cuts as these price cuts directly impact their revenues. Moreover, price cuts may increase demand and riders may find it comparatively harder to get rides on time.
Careem Pakistan’s MD, Mr. Junaid Iqbal, in a statement said that Careem wants to make the platform available to all and make sure that their transportation needs are taken care of in a convenient, safe and reliable manner.
Not to mention, Careem prices in Karachi and Islamabad will remain same.