15% reduction in fares for rides on Uber’s private-hire car service
Reuters file photo
SINGAPORE — Uber on Wednesday (April 13) announced a 15 per cent reduction in fares for rides on its private-hire car service, uberX, as part of a trial starting on Thursday.
The move came just a day after the Government announced a new regulatory regime for the private-hire car industry.
Responding to TODAY’s queries, Uber Singapore general manager Warren Tseng said the move would boost rider demand. Drivers, too, would spend more time with a “paying customer in the backseat and less time sitting idle while waiting for a request”, he added, noting that the firm would be guaranteeing hourly earnings for drivers following the launch, so they “have stability”.
The app-based ride-sharing company may revert to the original fares if demand fails to pick up and earnings stay the same, Mr Tseng added.
On the rationale for trimming fares, Mr Tseng said the goal was to bring cost savings to riders and secure more stable earnings for its drivers.
“We have seen the positive impact of price cuts in cities around the world, and we want to continue to serve riders and drivers, while also complementing the public transport system by helping people get to and from (the) MRT station safely, reliably and more affordably than ever,” he said.
The Government’s new rules for the private-hire car industry, set to come into effect by the first half of 2017, include licensing for drivers, registration of vehicles with the authorities, and the prominent display of decals and drivers’ vocational licence.
Uber had welcomed the measures, saying it was pleased that the Government had adopted many of its existing safety standards as part of the new rules.
