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Uber’s new rates make things more affordable for Jo’burg commuters

Premium taxi service Uber, which has been in operation in South Africa since August, has dropped its rates for the Johannesburg area.

When it officially launched in September its rates were considered high by some, and it didn’t help that Uber users in Cape Town and Durban had cheaper rates for all trips. Now, the company’s adjusted its rates in the country’s financial capital, just in time for those who’d like to use the service for the bevy of Christmas parties that are about to kick off.

The average Uber trip in Jo’burg should now be around 30% cheaper, mostly thanks to base fares dropping to just R15. This used to be R60. The minimum price for a trip is now R50, and to there’s a new equation to determine the price for a journey. Trip pricing can be calculated by taking the base R15 fee, then adding R1.10 multiplied by the time of the trip, and also adding R11 multiplied by the distance of the trip.

For example, an 9km trip that takes 15 minutes will cost R119.50 (R15 + R16.50 + R88). Experience shows that the price for such a trip using the previous model would’ve been closer to R200.

Uber’s general manager for Johannesburg, Alon Lits, says that they noticed the pricing discrepancy between the different cities – not in their rates, but in the average rates charged by other taxi services. Taxi prices in Johannesburg, Durban, and Cape Town are all different, but Lits says that it doesn’t need to be this way, because the running expenses remain largely the same in all three cities.

Their aim was to have prices in Johannesburg brought in line with those in the other cities. Lits also says that these new, cheaper rates for Uber in Johannesburg will be great for the drivers who have partnered with the company. They now stand to generate more revenue if people are more willing to user an affordable service. Uber isn’t willing to disclose how many cars it has on call in Johannesburg, but Lits says that the company’s aim is to bring down waiting times from the current average of 10 minutes to just under five minutes.

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