Users of taxi-hailing platforms Uber and Ola will have to shell out more money for travelling distances longer than 20 kilometres. According to Uber, “The change aims at ensuring you get a ride when you need one by justifying economics for our driver-partners.” For the popular ride, UberGO, the cost rate after 20 kilometres will be Rs 12 per kilometre. While the rate will remain fixed at Rs 6 per kilometre for distances shorter than 20 kilometres. When it comes to the premium ride, 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 claimed that the app, even after the increase in pricing, it is ‘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. For Kolkata, the distance limit is 15 km, after which there is a surge in prices. For Guwahati and Bhubaneshwar the limit is 12 km and for Jaipur, it is 10 km. As the increase has just been announced, commuters are not able to see the surge in ‘ride estimate’ that Uber shows on the app and on the website. Yet when the ride is booked and the distance is travelled, the bill shows the extra charge levied under the tag ‘Distance Charge’.
Meanwhile, rival platform, Ola has also reportedly increased the rates in the National Capital Region for commuters of distances more than 20kms. For Ola Micro, the rate of Rs 6 per kilometre has been increased to Rs 12 per km for distances of more than 20 km which are the same for UberGo. This move by the e-commerce portals comes as a ‘justifications of partner economics’.