Saturday, March 8, 2014

UberX makes a sneak preview in Singapore, with prices slashed in half

UberX was pretty much the only way I got around during my recent visit home to San Francisco.  And starting yesterday, it just might be the only way I get around Singapore from now on.

Uber has kicked off a beta of its lower cost UberX service in Singapore, where it previously offered only UberBlack cars.  If I'm not mistaken, this marks Asia's first taste of the lower cost service from Uber.

I'm not exactly sure how I got selected, but yours truly was among the fortunate ones with an opportunity to test drive the new UberX service.  I rejoiced after seeing the base fare slashed in half compared to UberBlack, and the per kilometer fare was more than half off.  At those prices, I'd be more than satisfied with a Camry or Corolla, which are the UberX cars currently being used, instead of the Mercedes or BMW sedans of UberBlack service.

But my smile was short lived.  The three times I fired up my Uber app, my estimated wait for an UberX to arrive at my pickup location was about 15 minutes on each attempt.   I'm hoping this will be improvd and maybe in a few weeks if/when more UberX drivers hit the road, this will become a non issue.

Uber has been a disruptor of local taxi companies since they first appeared on the streets with UberBlack.  They basically got licensed black car drivers with idle time to start picking up riders who might have otherwise booked or flagged down a normal cab.  Uber also changed the ball game with the most simple and easy to use mobile app for ride booking services.  Seriously, you just can't even compare the user experience on Uber's app with the clunky and ugly Comfort DelGro app.

Now UberX takes that disruption several degrees further by letting any Tom, Dick, or Harry become a driver without a special license.  Not only does this increase supply for consumers and increases competition with local cabs, but it also encourages drivers to drive for Uber instead of the local taxi companies (which could mean less revenue for those companies and also the government).  

I'm not sure if Singapore's UberX drivers are average people like you and me, or if they still hold valid operating licenses like their UberBlack limo driver counterparts.  Not that I really care though, as long as the fares continue to be half that of UberBlack here in Singapore.





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