Drivers slam 20% drop in Uber fares

File picture: Eric Risberg.

File picture: Eric Risberg.

Published Apr 8, 2016

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Cape Town - Uber’s decision to drop its fares by 20 percent has infuriated many of the electronic hailing service’s drivers and operators in the metered taxi industry.

Uber, which uses a cellphone application to connect with customers, reduced the rates on its UberX service in Johannesburg, Cape Town and Durban on Thursday.

Fare rates had been between R7 and R7.50 per kilometre.

The decision has infuriated hundreds of Uber drivers in Cape Town, who went on strike on Thursday.

“The drop in fares means less pay for us, and we are already struggling as the season changes with less people looking to use taxis,” said Uber operator Oscar Nemanja, who joined more than 50 drivers who downed tools at Cape Town International Airport yesterday.

Uber reduces fares by up to 20%

The move has also left other metered taxi drivers seething. Western Cape metered Taxi Association chairperson Aldino Muller said Uber’s drop in fares had affected the industry “negatively”.

“Naturally our drivers are upset. The drop in Uber fares will mean less business for them at a time when the petrol price has gone up. The cold season also results in a drop in business.”

Muller said the metered taxi industry was busy developing a cellphone application similar to the one Uber uses.

Uber spokesperson Samantha Allenberg said:

“Higher demand means driver partners will spend more of every hour moving people, less time waiting around and therefore get more money.

“The increase in demand meant payments to driver partners using Uber went up.”

Uber’s sub-Saharan Africa general manager, Alon Lits, said they were committed to making Uber the most affordable option.

Cape Times

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