Tech company reduces price by 20%

Uber could be looking to implement a downward review in the pricing of its low cost alternative, UberX, in Lagos.

According to Techcabal, the review will chop off 25 percent of Uber Lagos prices. By adding a base fare to the cost per kilometer/minute ridden, Uber fares are calculated.

When Techcabal asked Uber Lagos MD Ebi Atawodi if the price slash is a subsidy of some kind or if it was temporary, she responded with an emphatic “No.” According to her, the unit economics of Uber’s model in Lagos actually makes it possible to cut prices down without needing to pay drivers out of Uber’s pocket.

The price cut will significantly make Uber cheaper than any other available alternatives, including Easy Taxi and Taxipixi, and still increase demand for the private taxi service by people to whom the pricing makes the service more accessible.

In a similar development, the Lagos State Government has announced the launch of a Taxi License scheme that will bring more structure into an abysmally regulated industry.