Ride-hailing services Uber and Ola are taking several steps to increase their revenue share and cut costs. One of the few steps taken to follow the ‘increased’ income generating strategy is to charge more for the rides extending above 20 km.
According to Uber, “The change aims at ensuring you get a ride when you need one by justifying economics for our driver-partners.”
For an UberGo ride, the rate will remain fixed and the passenger would be charged Rs 6 per kilometre for distances shorter than 20 kilometres. The cost rate after 20 kilometres will be Rs 12 per kilometre.
When it comes to the premium ride service, UberX, the price has increased to Rs 13 per km for longer distances and for distances shorter than 20 km, the cost stays at Rs 9 per km.
Uber claims that despite the price rise, “We’re still the most affordable ride in the city.”
Uber has also introduced long distance fares in other cities like Guwahati, Vizag, Bhubaneswar, Jaipur and Kolkata.
Here are the 2 final bills of an UberGo ride; on the right, the one with no price discrimination, while the one on the left, with the presence of the tag “Distance Surcharge“, which shows the extra bill charged for riding beyond 20 km.
Uber’s rival Ola has also increased the fare for rides extending beyond 20 km. In the case of Ola Micro, the rate is Rs 6 per km till 20 km and Rs 12 per km after 20 km, which matches the rates Uber is charging for its budget UberGo ride.