Thursday 20 April 2017

Uber Arrives in Islamabad and Rawalpindi

Where is Uber?  

People are very curious about the start of Uber's operation in a main market such as Islamabad and Rawalpindi. In fact, ride-share or taxi user are waiting for Uber to enter twin cities because they are not somehow satisfied with the services of Careem. Consumers are not alone, the drivers and vendors that are currently working with Careem are also anxiously waiting for Uber's move to the nation's capital. It appears drivers and vendors that are working with Careem are not fully satisfied with the way Careem works and pays them.


Here Comes Uber!

Uber is going to launch its operations in Islamabad and Rawalpindi on Thursday 27th April 2017 and the registration for drivers (captains) and vendors has been started on Wednesday 19th April 2017. The establishment of Uber's regular office is underway in F-10 and they are currently operating from  the first floor of Envoy Continental Hotel, A. K. Fazl-ul-Haq Road, Blue Area, Islamabad. This hotel is near Warid's Office, Wan Fu, Dominos Pizza, and Ufone Tower.The permanent office of Uber is going to be in Tariq Market F-10/2 , Islamabad.

Uber's Payment Structure

Uber is encouraging drivers and vendors to start working with it from the first day. That is why it is offering "hourly guarantee" to make people earn well from the very first day. It is also looking forward to paying weekly bonuses that would be based on rides taken. Explained below is the payment mechanism of Uber in Islamabad and Rawalpindi.

Weekly Bonuses: 
  • 40 Trips - Rs.1,600
  • 60 Trips - Rs.3,600
  • 80 Trips - Rs.6,400
For example, if a driver takes 40 trips in a work week, he or she will get Rs. 1,600 bonus. In order to qualify for the weekly bonus, a driver has to do the following;
  • Maintain 4.5 Customer Rating
  • Maintain 90% Acceptance Rate
  • Maintain 50% Ride Completion Rate

Hourly Guarantee: 
  • 1 - 49 Cars = Rs.350 per hour
  • 50 - 99 Cars = Rs.400 per hour
  • 100+ Cars = Rs.450 per hour 
For example, if a vendor has 1 to 49 cars registered with Uber, he or she will get Rs.350 per hour for a car that stays active for an hour and does not get a ride between 7am to 3am. In other words, if a registered car stays active for 10 hours between 7am and 3am and does not get any ride, Uber will pay Rs.3,500 (Rs.350 X 10) to it. If a car stays active for 10 hours and gets 5 rides in the first 5 hours, hourly guarantee amount will not be paid.


Per Kilometer Compensation:
  • Uber will disclose the per kilometer compensation a day before the launch of their service that is 26th April 2017). They have kept drivers and vendors in dark to make them register anyway.

Vendors' & Drivers' Perspective

To attract vendors and drivers, Uber has come up with a better payment mechanism that is not easy to grasp. The first information session conducted by Uber on Wednesday 19th April 2017 in Envoy Continental Hotel, a great number of people participated and a good number of people resisted them with Uber to become vendors and drivers. The people who attended the session report that there was a female candidate as well. In fact, people are excited about Uber coming to twin cities because competition will make the market better.

Passengers' Perspective

Since Uber has not yet announces its rate per kilometer, therefore, it is too early to say if it is better than Careem. One thing is clear that Uber has to come up with market competitive rates to compete Careem. Careem is already charging a low rate in "Careem Go" and it is not easy for Uber to beat that mark. Even if Uber manages to offer lower rates than Careem, will it be able to keep its rate lower?

Careem or Uber? 

Well, to be honest; it is too early to say if Uber is better in Islamabad & Rawalpindi or Careem because the fight is yet to start in the next 7 days. Uber is going to do anything to take a significant portion of market share in Islamabad & Rawalpindi market because currently Careem is the only player in this strategically important market. It is just hoped that both companies compete with each other in a healthy way that not only works good for the passengers, but also pays good compensation to drivers and vendors who are pumping millions in it.