Uber Malaysia General Manager Leon Foong said the fare adjustment was an “open-ended” experiment to reduce waiting time for customers and also to increase earnings of their driver-partners in the long run.
“Based on our recent price cut, we have seen a substantial increase in rider growth,” he told FMT.
He said the experiment with pricing was data driven and had often yielded positive results.
“Uber has close to six years’ of experience experimenting with pricing and we have seen the positive impact of price cuts in cities around the world.
“It has given more riders access to Uber for less and helped more driver-partners secure more stable earnings.”
Foong said an increase in the number of riders would mean less driver downtime.
“We also see an increase in the number of drivers, which translates to faster pick-ups, lower prices and better reliability for our riders.
“Everybody wins.“
Foong said Uber was also constantly in touch with their riders, informing them about the impending price cuts ahead of time.
“We are continuously engaged with the driver-partner community in Malaysia, through our partner support centres whether in face-to-face meetings, or emails and phone calls.
“We encourage a frequent flow of communication between Uber and driver-partners and we are always open to feedback and to answer questions or concerns.”
Last Sunday, a group of 50 Penang Uber drivers held a press conference claiming they were mistreated.
The chief complaint raised by the now-suspended Penang Uber drivers was about their fare rates being slashed.
Since April 29, there is no more starting fare at flag fall. Trips are charged at 50 sen per kilometre and 20 sen per minute.
In contrast, when Uber began in Penang last year, the rates were RM3.50 for minimum starting charge, 70 sen per km and 40 sen per minute.
Uber takes 20-25% of the fare as a fee.
Another complaint was that the distance travelled to reach the customer was more than the length of the actual trip for which they were hired.
The drivers were also concerned over Uber management’s apparent disregard for their safety.
Earlier story: Penang Uber drivers revolt with ‘silent protest’