Uber Introduces Flexible Pricing in 12 Indian Cities

Uber has recently been experimenting with a feature named 'Flex,' enabling users to personalize their ride fares by participating in a bidding process. This flexible pricing service was introduced for testing in October of the previous year. Uber has now officially expanded this feature to over 12 Tier 2 and Tier 3 cities in India, including but not limited to Aurangabad, Bareilly, Ajmer, Chandigarh, Coimbatore, Dehradun, Gwalior, Indore, Jodhpur, and Surat.

Launched initially for taxi fares and subsequently extended to auto-rickshaw journeys, Uber Flex enables passengers to propose their desired fare for a ride. This marks a notable departure from the company's regular pricing model, which adjusts prices dynamically based on the prevailing traffic conditions and demand in the area.

Interestingly, Uber Flex provides users with the option to select from nine distinct pricing points, with one price serving as the default. Once the user picks a price, it is communicated to the available drivers in the vicinity, who then have the choice to accept or reject it. This approach bears similarities to inDrive, a competitor of Uber, where users can bid for fares in a manner akin to participating in an auction.

However, unlike inDrive, Uber is limiting the lowest fare you can set in the flex pricing mode. The new service is currently available for Uber Go rides and is also applicable when travelling between different cities, but is often expanded to Premier cabs and auto-rickshaw rides as well. Apart from India, Uber Flex is also being tested in countries like Lebanon, Kenya and Latin America. The report also states that the company plans to bring Flex to some metro cities like Delhi and Mumbai.