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Uber Eg reduces prices amidst budding competition from DiDi and InDriver

According to an email sent to customers, Uber Egypt reduced its fees per kilometer from EGP 3.05 to EGP 2.80, while their fees per minute was down from to EGP 0.42 from EGP 0.45

By: Business Today Egypt

Tue, Feb. 1, 2022

Uber Egypt announced on Monday that it will be reducing prices for its UberX services in Cairo, only a few days after the appearance of a new “cheaper” service on the application called “Uber Saver”.

According to an email sent to customers, Uber Egypt reduced its fees per kilometer from EGP 3.05 to EGP 2.80, while their fees per minute was down from to EGP 0.42 from EGP 0.45.

Its base and minimum fares remain the same at EGP 8 and EGP 13, respectively.

Ever since its acquisition of main ride-hailing competitor Careem in 2019, Uber Egypt has had a smooth ride. However, with the emergence of new applications in the market, Russia’s inDriver and China's DiDi Chuxing (best known as DiDi), it looks like Uber Egypt is keeping an eye on its budding competition.

Both inDriver and DiDi boast cheaper ride-hailing options.

DiDi announced that the base fare for rides in Egypt would range from EGP 7.2-7.5, while the fees per kilometer and fees per minute will be EGP 2.61-2.8 and EGP 0.36-0.40 respectively, back in September 2021.

While Russia’s inDriver provides a novel auction-like system, allowing both riders and drivers to negotiate trip prices, making it popular with taxi drivers. However, drivers used to Uber and Careem’s unilateral billing structure have complained that this has led to cheaper rides and less income.

According to TechCrunch, inDriver in Kenya revealed to drivers that the commission for every trip made will be at 9.52%, lower than DiDi’s 13% and Uber’s 25%.

During its pilot phase in Egypt, an inDriver representative stated that they would not be taking commission fees when it rolled out, however did not note when it would end.

Founded in 2012, Didi has around 600 million users across 17 countries in Africa, Asia, Latin America and Russia. The company also has over 15 million annual active drivers.