Uber changes base fares for trips in Dubai
Dubai - The base fares will fluctuate based on the day of the week and the time of day.
Published: Tue 24 Apr 2018, 10:57 AM
Last updated: Wed 25 Apr 2018, 9:23 AM
More than 300,000 one-time riders took a trip with ride-hailing service Uber in the first few months of the year. But following a change in its pricing system on Monday, it will be interesting to see if ridership numbers will be impacted in the UAE in Q2 of 2018.
This week, Uber announced it will be implementing "changes to its fare structure", with some trips going up in price while others will become cheaper.
Notifying all users by email, it stated that "effective immediately" users will see a change in base fares on all UberSELECT and UberVIP trips in Dubai.
Currently, the static base fare sits at Dh8, but with the new system, users will be subject to a new dynamic static base fare of Dh5.4, Dh6.7 or Dh10.6 (varying on the day of week/time of day). It could also change during public holidays.
Introducing the new pricing system, Uber said it is doing so as it is "committed to remaining compliant with local regulations in Dubai".
During peak times, Uber fares have always been subject to change, but now the app's pricing system will fluctuate based on several other components too. Base fares will change based on the day of the week and the time of day. And additionally, the per-minute and per-kilometre fare components, as well as booking fee, will be updated.
Before, UberSELECT and UberVIP riders were charged Dh1.83 per km, rising by 50 fils every minute. But it will now increase to Dh2.25 per km. However, it will only charge 25 fills for every minute travelled.
On the upside, the minimum charge fare has decreased from Dh17 (excl. booking fee) to just Dh15 (excl. booking fee) and the charge for wait times will remain at 50 fills per minute.
Users can see the fare breakdown via the upfront pricing displayed prior to booking a ride.
Speaking to Khaleej Times on Tuesday, an Uber representative confirmed "more than 350,000 riders took at least one trip with Uber" within the last quarter.
But with the price change affecting just two of the service's ride options (UberSELECT and UberVIP), Khaleej Times asked if it has chosen to focus on these two options because they are the most utilised rides on the app.
"I cannot confirm this at the moment. But we have seen big demand for UberX with a significant portion of rides beginning or ending at a metro station or transport desert," an Uber spokesperson said.
New fare structure
Static Base Fare: 8
Dynamic Base Fare: 5.4 / 6.7 / 10.6
(Varies by day of week/time of day. ?May change during public holidays.)
Distance: 1.83 per km
Time: 0.5 per min
Waiting charge: 0.5 per min
Distance: 2.25 per km