Following in the footsteps of its main rival, Uber in a mail sent to its driver partners announced an upward review in prices for its services. A move expected to assuage the demands for a price increment by its drivers.
This is set out to protect the drivers’ operational costs which according to the mail “may have increased due to the current macroeconomic situation …”. Thus, reflecting Uber’s clear understanding of its economic environment and responsive feedback mechanism.
It is worthy to note that this 13% increment is 2% lower than Bolt’s adjustment and only affects its flagship service UberX.
In a market with cutthroat competition and almost zero switching cost, Uber may have worked out a retention package that it hopes will “help make Uber the app of choice …while maintaining affordable service for riders”. In a price-sensitive marketplace as this, retention on both sides of the platform remains key.
