The new UberFLASH system goes live on 19 January 2018. For those who are still living in their own world, read up on how the UberFLASh booking system works.
Fare hike on 1 January 2018 and Fare reduction on 19 January 2018
Uber announced a series of change starting from Nov 2017 where the focus was on flexibility where drivers get better features upgrade and support.
In December 2017, the focus was on Experience. Uber sought to improve driver’s experience by offering priority support and 24/7 phone and weekend UberHub support.
The focus for January 2018 was on earnings. Uber even signed off on the email sent to drivers that offers better earnings experience.
Uber kept true to their words and introduced the new fare structure which comes into effect on 1 January 2018.
Fare Cut! UberPool gets even cheaper
Good thing does not seem to last in the private-hire industry. Shortly after the fare revision, Uber also announced the published fares of the new UberFLASH service.
Uber also confirmed that the fare will be 5% to 10% lower than that of UberX during the official launch of the service. UberPool fare will also be at a discount of the new UberFLASH rates.
Unfair?
Uber did not lie, they did increase the UberX fare. The introduction of UberFLASH merely made the UberX service a thing of the past.
It was the exact move that Grab adopted when they introduced JustGrab, promised lower fares than GrabCar and GrabCar became a thing of the past.
Unless Uber riders hate taxi-drivers so much and do not want to take their chances with UberFLASH, you can expect most riders to flock to the cheaper and faster UberFLASH service.
Taxi Drivers only pay 10% commission to Uber
The Straits Times reported that Comfort Delgro Taxi Drivers who are assigned jobs through the UberFLASH platform are eligible to receive dynamic pricing jobs where prices increase during periods of high demands, a privilege that was once exclusive to private-hire drivers.
Uber also takes a 10% fare commission of the fare on every UberFLASH trip from taxi drivers, half of the 20% that private-hire drivers are charged for every trip.
Surge in number of drivers will hurt Fare
The dynamic pricing works based on the theory of demand and supply. When demand is high and supply is low, prices increase, vice versa.
Comfort Delgro is the largest taxi company in Singapore. The potential inclusion of 15,000 CDG taxis into the UberFLASH system will have a deep impact on fares. Private-hire drivers drive during periods of high demands for high fares to make-up for the low fares during periods of low demands.
With a huge increase in the supply of drivers, riders’ demands are more easily met and in turn, means potentially lesser surge pricing.
While Comfort Delgro Taxi Drivers can expect a surge in their earnings, private-hire Drivers earnings are expected to take a hit when their share of the pie is further split into many more portions.
