Within 8 months of launch, Uber begins rickshaw service

It offers fare of Rs4 per km with base price of Rs45 and per minute charge of Rs1

The average cost of 10km ride under Uber’s pricing model is around Rs110, whereas rickshaw drivers currently charge around Rs250 for the distance. PHOTO: EXPRESS

LAHORE:
Uber Technologies, a global taxi dispatch service app, on Monday formally launched its new service uberAUTO in Punjab’s capital Lahore.

The move to induct auto-rickshaws has come within eight months of Uber’s launch in Pakistan. It has added another low-cost product to its service in order to capture the unorganised mode of transportation.

“The strong response by the Pakistani market has forced the company to aggressively pursue its plan to develop its business even further and provide riders and drivers more opportunities to experience convenience,” said Uber International Launcher for Middle East and Pakistan Loic Amado, while talking to The Express Tribune.

He said auto-rickshaws made around 5 million rides a week and their potential could easily be seen and brought under the umbrella of safety, reliability and economic opportunity.

“We have got a massive response from Lahore and this is why we have once again chosen Lahore to start this new service,” Amado said.

For Uber, autos are the most ubiquitous transport option in many Pakistani cities and the company is continuously working to expand transportation choices for the people.

The pricing model for uberAUTO, according to the company, is almost 40% cheaper than current prices. It offers a fare of Rs4 per km with a base price of Rs45 and per minute charge of Rs1.

These rates may look attractive for the riders, but may not be a viable option for the drivers.


“The company is approaching us for registration. Right now, we are not aware of the pricing model, but one thing is for sure, we will register ourselves only if it proves economically viable,” said a rickshaw driver at the launching ceremony.

The average cost of a 10km ride under Uber’s pricing model is around Rs110, whereas rickshaw drivers currently charge around Rs250 for the distance.

“Rickshaw drivers normally find 3-5 rides a day. Under the Uber banner, the number will increase, as they will not only be limited to picking up customers they come across, but the app will also provide them access to a much larger coverage,” explained Uber Pakistan Head of Expansion Zohair Yousafi.

“We are getting an attractive response from the riders for the new service and we are constantly in contact with them. We see a huge demand for this mode of transportation,” added Yousafi.

The uberAUTO service has been launched with a free week and each rider will get five free rides up to Rs80 from Monday to Sunday.

All the drivers will have to go through a tough scrutiny process.

Punjab Information Technology Board Head Umar Saif, who was also present on the occasion, said initiatives like uberAUTO reflected the way in which Lahore embraced technology in the transportation sector. “Such solutions will make travel in the city safe as well as affordable and convenient.”

Published in The Express Tribune, October 18th, 2016.

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