Brand Updates & Reviews

Uber reduces fares by 20% in Karachi and Lahore

Uber reduces fares by 20% in Karachi and Lahore

Uber has announced that it will be reducing its rates up to 20% on UberGO in Lahore and Karachi, and also has introduced its premium UberX service in Pakistan.

By benefitting from this discount of 20% uber service, not only will riders pay less for their trips but driver-partners will earn more through its increased demand.

“Over the years, we’ve learned that the single most effective way to help driver-partners get more trips is to reduce prices for riders”, said Uber in a press statement.

Higher demand means driver-partners will spend more of every hour moving people, less time waiting around and therefore get more money.

“This is exactly what happened when we reduced fares in cities such as Nairobi, Kenya and Bucharest, Romania. The increase in rider demand meant payments to driver-partners using Uber went up”, said the statement.

Pakistan price cut details are as following:

    • Old fares: Rs. 100 base, Rs. 6.84 per KM, Rs. 3.15 per minute, Rs. 150 minimum, Rs. 150 cancellation
    • New fares after Price Cut: Rs.80 base, Rs. 5.59 per KM, Rs. 2.50 per minute, Rs.120 minimum

While these price cuts are beneficial for riders, they are ultimately designed to help Uber driver-partners, claimed the statement.

“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 said.

Speaking about the price cut, General Manager for Uber in Pakistan, Safee Shah explained:

“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.

“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.”

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