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Uber intros cheaper Joburg pricing

Tyson Ngubeni
By Tyson Ngubeni
Johannesburg, 14 Aug 2014
The UberX promotion offers new and existing users free rides from 11am today until 5pm on Sunday.
The UberX promotion offers new and existing users free rides from 11am today until 5pm on Sunday.

Uber - the smartphone app that connects passengers with drivers - will today launch its low-cost pricing range UberX in Johannesburg alongside its high-end UberBlack service, which has been available since August last year.

In a bid to add incentives for users, the company also announced a partnership with Discovery Insure, whose members will receive a 25% upfront discount on Uber trips. Discovery Card users will be able to receive cash back of up to around 20% of the net spend on trips from January next year.

Alon Lits, GM for Uber Johannesburg, says user uptake in Johannesburg has been positive since the company introduced its services. Although specific figures could not be detailed, he notes the company provides "thousands of safe rides on a weekly basis".

The minimum fare for UberX is set at R20, with a rate of R7.50 per kilometre. The more expensive UberBlack prices are set at a minimum of R50, while the rate stands at R11 per kilometre.

Uber notes user experience and safety will remain unchanged with the introduction of the new UberX price range. "Riders requesting a ride using the application will still be able to see their driver's photo, name and registration before they get in the car."

The company says new and existing users will have access to free UberX rides in a promotion starting at 11am today and ending at 11pm on Sunday.

Metered taxi links

Lits notes Uber seeks to be a partner to metered taxis, while the local strategy aims to promote entrepreneurship. "Traditionally, the metered taxi industry is one where drivers are salaried employees working specified shifts, without much freedom or flexibility.

"We partner with hundreds of independent business owners, who now have the flexibility to work as much and whenever they want. Drivers make far more - and with greater flexibility - than any other option available to them."

He says drivers who partner with the company are issued with iPhone 4 or 4S devices and data connectivity in order to link up with users, and the company reclaims the phones when the partnership ends.

Mixed results

One of the first local start-ups connecting passengers to metered taxi drivers was Cape Town-based Zapacab, which launched last year and also supplied drivers with smartphones - but it closed down in May.

Meanwhile, passengers using the Johannesburg-based SnappCab app are linked to existing metered taxi companies. The company plans to expand its service to Cape Town and Durban.

Uber and SnappCab are available for download for Android, iPhone and BlackBerry devices, while the former is also available for Windows Phone users.

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