APPARENTLY trying to firm up top position in the Nigerian transportation business, ride hailing App, Uber has decided to drop the price on a category of its services, called UberX in Lagos.
According to the company, the price drop which will be up to 40 percent would not affect its commitment to offering an affordable and convenient option for Nigerians to move around. The price drop means that not only will riders pay less for their trips but driver-partners will earn more through increased demand. According to the General Manager at Uber Sub-Saharan Africa, Alon Lits, Driver-partners play a vital role as without them Uber can’t help keep the people of Lagos moving. He revealed that Uber is always talking with partners and taking their feedback on board. He said that regular focus groups have been held and fare reductions were raised by driver-partners which resulted in the present action. He said: “We always consider driver economics in each city that we operate in and after years of experience, what we‘ve seen in cities across the world is that lower fares mean greater demand, lower pickup times and more trips per hour – increasing earning potential and creating better economics for drivers.” “We believe these changes will help, but while the city adjusts to the new prices, we are temporarily putting in place minimum earnings guarantees for driver-partners to ensure they don’t lose out. Should those drivers, who put in the time, make less than they usually would during this time, we will provide them the difference. However these lower prices are not always permanent and operational expenses and partner economics are closely monitored. In the unlikely event that the lower prices don’t result in driver-partners making the same or more, Uber will rethink the fare reductions.” Since Uber’s launch in Lagos in 2014 and in Abuja in March 2015, Uber has enabled over 1000 economic opportunities. Every day, thousands of Nigerians use Uber to get across Lagos and Abuja.