Uber just became a lot cheaper in Karachi, Lahore

Ride-hailing service has also rolled out a new premium service

Ride-hailing behemoth Uber just made its service a lot more affordable by slashing prices by up to 20 per cent.

Starting today, UberGo riders in Lahore and Karachi will pay 20 per cent less for their trips. However, driver-partners are expected to earn more through increased demand.



“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," General Manager for Uber in Pakistan, Safee Shah, said.

"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," he added.

Latest UberGo rates. SCREENGRAB : UBER

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



Uber previously implemented a similar strategy in other countries which yielded positive results. “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,” the company said in a statement.

UberX

The ride-hailing service has also rolled out its latest premium service called UberX.

“In line with our global business we will be introducing a new category, UberX, wherein riders will have access to more premium cars at reasonable prices,” said Shah.

UberX premium service rates. SCREENGRAB: UBER

The new service is expected to feature premium cars at reasonable prices and goes in line with Uber’s philosophy of providing riders with multiple options at different price points, and generating more economic opportunities for drivers-partners.

Uber which started its service in 2009, is now available in over 450+ cities in over 75 countries spanning 6 continents. The service made inroads in the Pakistani market back in 2015 and was an instant success in the country.