Uber is cheaper than the rickshaw

The world’s expanding dispatcher „Uber“ is now active on the Indian market. In this case, they want to start with an initial rate which is the equivalent of 20 cents, according to a report in a business magazine. 

Uber’s Asia CEO Allen Penn is testing the world’s first „ultra-low-cost option“ in a total of ten Indian cities. Small Tatra cars are used and for their purchase Uber even is providing loans. The motorised tricycles (tuk-tuk) still dominate in India’s cities. But their passengers should now be served by the cheap offer of the Uber compact cars. That is the reason for the price war as the price is lower than the average profit of a rickshaw ride: 20 cents start fee, 15 cents per kilometer. „Uber is not so cheap anywhere else in the world,“ Penn says to German business magazine „Handelsblatt“.

Should the concept prevail, there are plans to extend it to other Asian countries. jh

Photo: Helmut Wegmann/pixelio.de