Fuel prices in India are soaring, so Uber has raised its fares by 15% in West Bengal.
State officials, however, report that the company did not appropriately handle the fuel price information.
Uber Hikes Fares By 15.6%; What’s Behind This?
The company has not released an official statement, but drivers have received messages confirming that a new pricing system has been implemented.
The online ride-hailing company’s customers haven’t received this well. The company’s customers have complained that the new pricing model will not be affordable, especially now that there are limited mass transit options.
According to the new pricing model, Uber will charge Rs 14.7 per kilometer, up from the current rate of Rs. 10. Additionally, the base fare has been raised from Rs 47.25 to Rs 48.
Meanwhile, the minimum fare remains at Rs. 85. If you ride 10 kilometers for 30 minutes, the old fare would be Rs. 195.85. As a result of the new rates, the fare would now be Rs 225. It represents an increase of 15.6%.
Uber has told its driver-partners that 25% of the total fare will go to the company’s account under the new pricing system, and the remaining 25% will go to the driver. It will help drivers and car owners recover some of their losses due to the fuel hike.
Uber Fails To Inform The Transportation Department Of The State Government.
The state government has reported that the company has not informed the transport department about the new fares.
The state government said the company failed to inform the transport department of its new fares on Wednesday.
As per the transport minister Firhad Hakim, “We are the licensing authority and according to the terms and conditions, it is upon the aggregator to inform the state government ahead of any fare revision. We have already sent them a letter.”
Ola, the Uber competitor, has also revealed that its prices will be rising soon, too.
On Wednesday, diesel and petrol were priced at Rs 92.03 and Rs 98.64 per liter, respectively. On January 1, the price of diesel and petrol per liter is Rs 77.44 and Rs 85.19, respectively.
Ola and Uber have not commented on this.