Route-Based Pricing on UBER. Coming Soon


#1

Uber has launched what they call, Route-Based Pricing whereby customers are expected to pay more for going to places that are popular. They have recently launched the service to a select number of states in the United States.

For example (Local example): Hiring an Uber from town to go to JKIA will cost more than hiring one from town to go to let’s say, Kawangware.

Also, besides popular destinations, routes that are used by most customers are going to attract this pricing too. For example, using Thika RD, is going to cost more than using Juja RD.

Unfortunately, the extra charges for popular routes will not translate to more profits to the drivers. Instead, all the monies will go to Uber’s pockets.

Personally, I use Little. The live pricing makes it convenient for me to know when to end my trip and pick a matatu if I’m yet to reach my destination. That has never happened though. Hehe!


#2

I really wonder how they will achieve that in KE. We see a lot of things working abroad and when people get here, it doesn’t fly. Kenyans like flat pricing and this just feels like a social version of surge pricing.


#3

It will work. This is simple, as long as you choose a popular destination, the price you are expected to pay will be in favor of the route-based pricing model.

Uber made a loss of over $2 Billion last year and this is one of the measure towards recouping some of these losses and that won’t happen in the US alone.

By the way, now that you have responded here. Hiyo gari ya 200bob for 56KMs ni gani please?


#4

Loses are part of life when starting a new business that is dependent on market fluidity. Uber Pool would be a great solution for this - how many times do random people charge strangers for lifts with their personal cars on thika road, waiyaki way. mombasa road etc. it already works just that now it’ll have a corporate tagged name.

Sio gari, it’s the total commuter fee I pay to get to town and back from my place.


#5

Thanks too bad it’s not a car. 56KMs commuting? Na vile mimi zile siku was employed 20KMs used to make me feel like a gunia every jioni.

Losses are acceptable, but when you hit RED, remember, Uber is floating on investors’ money and that money has to come back, at any cost.


#6

I have been using Little for a while now, ever since they became cheaper to use than Uber, and also retained he Kshs 190 base fare. I find myself benefiting from that a lot going around Kilimani. Also in the long run Little is still cheaper. The last like 5 times I’ve used Little I’ve always compared, and Little has always come on top.

Now this is one of the reasons that Uber model can’t work here. My colleagues use Taxify which they claim is cheaper than Little, I’ve rode with drivers who were advising me to move to Mondo ride, claiming it to be better for both of us, and stating the case convincingly. Only that I can’t keep more than two taxi apps on my phone (storage size things).


#7

I thought Uber chap chap was supposed to be an affordable Uber solution. Lately am seeing the cost estimates indicate more fare for Uber chap chap than Uber x.


#8

Days like today make you wish we had Uberpool…


#9

I remember Uber explained this to me.

This is meant to discourage you from using ChapChap on a route that should essentially be used for UberX.


#10

Here I thought the whole point of Uber Chap Chap was economy… Now where does routes come in …


#11

ungewaambia it does not make sense. If that is the case, then they should blacklist/gray out/unlist ChapChaps from the said routes.


#12

Let me try to explain.

Have you guys noticed that when you hail a ChapChap, you might end up getting a Vitz or Demio? It’s no longer just closed to Altos.

Uber has a problem of keeping everyone happy. When ChapChap was introduced, it was an exclusive Alto club, but soon, the majority of Uber customers were using ChapChap and neglecting the rest.

UberX guys started complaining. So Uber did the following:

Opened up UberChapChap as an opt-in feature for UberX drivers

This did not sit well with UberChapChap guys who now had fewer customers. So to appease them, Uber did the following:

Increased the radius that UberChapChap could operate but limited this to certain hours, eg at night and early morning.

This model has so far worked to keep both parties happy, at least, until there’s something else to complain about.


#13

Also, the screenshot shared by @Stiffler254 clearly shows that ChapChap’s price is high due to a surge. A good example of the high demand that’s there for ChapChap.

In this case, just hail UberX