Uber is testing a new feature that will allow you to decide pricing for your ride, here’s how it works – ET Auto


According to the report, the company is planning to launch this service soon in the metro cities of India, including Delhi and Mumbai.

Uber is currently testing a new pricing service called ‘Uber Flex, ‘as reported by TechCrunch, in over a dozen cities in India. This service allows commuters to bid for a particular fare for their ride, giving them greater control over the pricing.

Uber Flex was launched last year in October and has since expanded to more cities. It has since expanded to over 12 cities, including Ajmer, Aurangabad, Bareilly, Chandigarh, Coimbatore, Dehradun, Gwalior, Indore, Jodhpur, Surat, and others. Initially, it was introduced for cabs and later extended to auto-rickshaw rides.

“We are piloting this feature in some of the Tier 2 and 3 markets in India currently,” an Uber spokesperson told TechCrunch. According to the report, the company is planning to launch this service soon in the metro cities of India, including Delhi and Mumbai.

How Uber’s Flex pricing works, and is different from its rival
This new ‘Uber Flex’ pricing system differs from the standard dynamic pricing model used by Uber. Instead of fluctuating prices based on supply and demand, Uber Flex offers nine fixed pricing points for riders to choose from. Once a fare is selected, it is then shared with nearby drivers, who can choose to accept or reject the ride based on the fare. This allows riders to select a fare that suits their budget and gives drivers the option to accept a ride that is profitable for them.

InDrive, one of Uber’s competitors in India, allows riders to manually input a specific fare, which can result in drivers feeling underpaid due to passengers offering low prices for their rides. To address this issue, Uber has implemented measures such as not allowing passengers to set a specific fare manually in the flex-pricing mode and setting a cap on the lowest fare.

Uber Flex is available for Uber Go rides and intercity cabs in some cities. In some cities, it is even offered for premier cabs and auto-rickshaw rides.

In addition to India, Uber is testing its flexible pricing model, Flex, in various other markets around the world, such as Lebanon, Kenya, and Latin America.

Uber is testing other new services in India, such as Uber Taxis in Mumbai and a Wait & Save model in Mumbai, Guwahati, and Chandigarh. Uber Taxis offers traditional taxi drivers as an option, while Wait & Save allows passengers to pre-book a ride at a lower fare.

  • Published On Jan 8, 2024 at 10:34 AM IST

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