Price war of alternative taxi services. Uber in Prague is getting cheaper
“After a thorough analysis, we recommend a ten percent fare in Prague for the UberX Saver service,” reads the announcement for Uber drivers, which will be displayed in the user interface this week. UberX Saver allows you to book a taxi service in advance for a specific route, which may be suitable for a trip to the airport or for long-term trips.
“In recent months, the whole area of transport and mobility has been hit hard as people have significantly reduced their mobility as a result of the pandemic. In connection with this, we are taking measures that aim to stimulate demand and thus generate additional revenue opportunities for drivers who use our platform, “she wrote in response to the reduction in the Uber press department.
“At the same time, we are doing our utmost to make our service as accessible as possible and to move people around the city quickly, comfortably and safely,” is another reason for the US alternative taxi service.
On the other hand, Bolt is not resorting to cheaper or more expensive prices for the time being. “Our long-term strategy is not much affected by sudden and one-off steps by the competition. We are not considering a similar adjustment now, “Soňa Stloukalová, the company’s country manager, told the E15 daily. January and February are traditionally the months when drivers experience a slowdown in client interest, and in the last two years, the first months have also been associated with government restrictions due to the spread of coronavirus.
However, according to Bolt’s representative, drivers currently have enough orders. “Bolt has been monitoring and evaluating the market situation for a long time, because it is our priority for Bolt’s partner drivers to earn enough even in months with generally lower demand for haulage, such as January or February. Thanks to our marketing activities, we are doing well and partner drivers have a sufficient number of rides these months, “she said.
However, there has been dissatisfaction with the pricing policies of both companies on social networks in the experience of drivers driving under the Bolt and Uber headers. This has resulted in a petition calling for an increase in Bolt’s fares. So far, three dozen people have signed it. Among other things, petitioners argue that prices are rising rapidly.
Last summer was different, after the end of government restrictions, the existing drivers of alternative taxi services returned to their original jobs and companies thus faced a shortage of people. Thus, prices rose as interest in taxi services persisted. Bolt therefore tried to attract a new driver, for example, with generous boarding bonuses.
The drivers are in a specific situation vis-à-vis Bolt and Uber, as they are not their employees. They either travel independently on a trade license or belong to a fleet that provides drivers with cars and formally employs them. It is a model that also uses other platforms called gig economy. Drivers have no formal leverage for multinational companies to use to improve conditions. Although quasi-unions called the Workers’ Initiative are emerging, which have ambitions to get involved in these matters, their activities are still in their infancy.