As the fuel prices in India hit the sky, Uber has announced a hike in its fares by 15% in West Bengal.
However, the state government has stated that the company had failed to inform the transport department about the fuel prices.
Uber Increases Fares By 15.6%; How Does This Work?
As per the company, there is no official statement but the drivers working with the company have received messages that confirmed that a new pricing system has been put in place.
This has not been received well by the customers of the online ride hailing company. Many of the customers of the company have complained that the new pricing model will not be affordable, especially now that the options for mass transportation are few.
As per the new pricing model, the increased fare by Uber is Rs 14.7 per kilometer, up from the existing rate of Rs. 10. Additionally, the base fare has been upped from the existing Rs 47.25 to Rs 48.
Whereas, the minimum fare remains unchanged, at Rs. 85. In simple words, if you ride 10 kilometers for 30 minutes, the old fare would be Rs. 194.85. However, as per the changed rates, the fare would now be Rs 225. This is a 15.6% increase.
Also, under the new pricing system, Uber has told its driver partners that 25% of the total fare will go to the company’s account and the remaining will go to the partner. Apparently, this will help the drivers and the car owners as well in order to recover a part of the losses that they will incur due to the fuel hike.
Uber Fails To Inform Transport Department Of State Government
The state government has informed that the transport department has not been informed by the company about the new fare structure.
On Wednesday, the state government said the company had not informed the transport department about its new fare structure.
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.”
In addition to that, several drivers from Ola, the competitor of Uber have also revealed that a rise in prices of Ola is coming soon.
As of Wednesday, the price of diesel and petrol per litre is Rs 92.03 and Rs 98.64 respectively. Whereas, on January 1, the price of diesel and petrol per litre is Rs 77.44 and Rs 85.19 respectively.
There is no statement about this from Ola or Uber.
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