UberX, the more affordable option of Uber’s services, has gotten even more affordable than before. The company announced that it has revised its pricing structure and the new fares will take effect immediately starting today (18th January 2016). The price revision is quite significant as it reduces the base fare and running tariff of UberX.
Taking a look at Uber’s new UberX fare structure for Kuala Lumpur, the base or minimum fare is now RM0.95 instead of RM1.50, while the running tariff prices are set at 25 sen per minute or 60 sen per kilometre respectively instead of 35 sen per minute and 70 sen per kilometre respectively.
To put things into perspective, Uber has also provided fare estimates showing a ride from KL Sentral to Mid Valley will supposedly cost RM4 – that’s half of its old price of RM8. On the other hand, a traditional taxi would charge RM12 for the same journey (Uber’s estimate).
In the same fare estimate chart, a journey from 1Utama shopping mall to Taman Tun Dr. Ismail will cost RM3 under the new UberX pricing structure, RM5 if it were following the old pricing structure, and RM8 for those opting for a traditional taxi (Uber’s estimate). Cancellation fee has remain unchanged at RM5.
According to Uber, this move is to promote accessibility, where short trips for errands in the city will now not only be more reliable, but more affordable as well. In addition to that, Uber has mentioned that the lower fares will allow Uber drivers to benefit from the increased number of riders. Not only that, the increase in the number of partners has also resulted in lower wait times as the rider and driver are closer to one another.
Now that Uber has reduced its prices for UberX even further, how would it affect the Uber driver’s profit from each ride?