Bad News For Delhi Commuters As Uber Hikes Ride Time Fare By 50 Per Cent

The US-based taxi aggregator service Uber has raised the ride-time charge from Rs 1 to Rs 1.5 per minute.

By Carandbike Team

1 mins read

Published on January 7, 2017

Highlights

The move has instantly attracted a backlash by many users
Users are also questioning the timing of the move
Uber is yet to confirm if the hike will spread to other cities as well

The US-based taxi aggregator service Uber has hiked the ride time fare of its entry-level offering 'UberGo' by up to 50 per cent in the national capital region (Delhi-NCR). In a statement the company has said that it has raised the ride-time charge from Rs 1 to Rs 1.5 per minute. This now means that Uber’s per kilometre charge is now Rs 6 for the first 20 kms and Rs 12 per kilometre post that distance. The ride time charges which are calculated on the basis of the total duration of the ride have also been hiked to Rs 1.5 per minute for both 'UberPOOL' and 'UberX' services. The move has instantly attracted a backlash by many users of the service, who have voiced their disapproval on social media. Taking to twitter several Uber users have called the company out on what they see as opportunistic, given the strong position Uber enjoys in the Delhi market. The timing has been questioned as well, coming at a time when many consumers are still reeling from the impact of demonetisation and opting for the cashless options that transportation services like Uber offer. The affordability of services like Uber is what has led them to become so popular amongst commuters around India. Hence the other major concern people now have is whether the new pricing will also be applicable to users in other cities – something Uber has not confirmed or said it will do at this time. An Uber spokesperson has told PTI, "Starting January 5, 2017, we have made some changes to our pricing structure in Delhi, NCR in order to serve the city better." In 2016 Uber had introduced its upfront fares, which means the service app calculates and shows rates depending on expected time and distance of travel and local traffic. The fares fluctuate due to demand. When Uber’s global CEO Travis Kalanick had visited India just last month he said, “We are very excited about future of Uber in India. With hundreds-thousands of driver opportunity and jobs we have come here with, we couldn’t be more excited to serve India and to work with sons and daughters of India who run Indian operations." He had also been quoted as saying Uber has made amazing progress in India. The company currently operates across 73 countries. India is now its second largest market – second only to its home market of the United States – and accounts for 12 per cent of all Uber trips globally. Uber currently has operations in 29 Indian cities and its biggest rivals are local player Ola and taxi operator Meru.

# Uber # Uber price hike # Delhi NCR # Auto Industry

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