Uber has been secretly testing a flexible pricing service in over a dozen Indian locations, a move that might help it grow its customer base and compete with Ola and inDrive.
Eltrys first reported that Uber Flex, a flexible pricing option, launched in India in October 2018 and has extended to over 12 cities, including Aurangabad, Ajmer, Bareilly, Chandigarh, Coimbatore, Dehradun, Gwalior, Indore, Jodhpur, and Surat. Uber acknowledged its flexible pricing expansion.
“We are piloting this feature in some of the Tier 2 and Tier 3 markets in India currently,” an Uber spokeswoman informed Eltrys.
The program, first for taxis and then for autorickshaws, allows commuters to bid a fee. That differs from Uber’s dynamic pricing strategy, which fluctuates based on regional supply, demand, and traffic.
Uber Flex lets clients choose a rate from nine pricing points, with a default price, to share with neighboring drivers. Drivers accept or refuse rides based on the fare.
Unlike Uber, inDrive, which operates in many Indian cities, lets passengers manually enter a fare. However, several inDrive drivers across the country have complained about customers paying cheap trip charges. Instead of addressing the driver worry with customers furiously haggling their fee, inDrive says their “unique approach ensures that drivers are fairly compensated while passengers enjoy an affordable yet high-quality ride-hailing experience.”
“By offering drivers the option to make counterbids to passengers’ prices, inDrive fosters an option for the driver to increase the price if he feels to do so,” inDrive APAC director Roman Ermoshin told Eltrys about responding to driver concerns about being underpaid.
The price on ride-hailing apps frequently disappoints drivers, who want fair pay. For fairness and transparency, inDrive displays a recommended price in the app, which is usually slightly lower than in other apps. Due to inDrive’s significantly lower driver fees (which are roughly twice as low as those of the competition), drivers can now earn the same amount or more.
Uber is not letting users set a price manually in flex-pricing mode to help InDrive drivers with low fares. It caps the lowest fare.
Some cities provide inexpensive Uber Go and intercity taxi trips, while others offer Premier and autorickshaw rides. Cash or digital payments are accepted for commuters. In addition, Uber is not using its flex pricing strategy across all modes in one city.
Uber is testing Flex in Lebanon, Kenya, and Latin America. Eltrys said that the corporation planned to test the new service model in Delhi and Mumbai.
The San Francisco-based business is trying other options in India to meet local demand, including Uber Flex. Uber Taxis in Mumbai provides regular taxi drivers, and a Wait & Save model in Mumbai, Guwahati, and Chandigarh lets customers avoid surge pricing and pre-book a car at a lower cost.
New app-based taxi companies have entered India’s urban transportation sector in recent months. BluSmart and Evera provide electric taxis, whereas Ola, Uber, and inDrive have many gasoline cabs. For income and new consumers, bike taxi company Rapido began providing cab service in the nation last year.
No matter the platform, Indian taxi drivers suffer owing to poor pay and unsafe conditions. Many are unsure whether they will stay in business when their automobiles become obsolete.
