Uber fares have always been subject to change at peak times, but now the ride-sharing app's pricing system will fluctuate as a rule.
Effective immediately, Uber's base fares will now vary, depending on the day of the week and the time of day. It will apply on all UberSELECT and UberVIP trips across the city.
In an email sent to users on Monday, Uber said it would change its per-minute and per-kilometre fare components, as well as the booking fee.
The base fare would now oscillate from Dh5.40 to Dh10.60. The per-kilometre fare would increase, while the per-minute fare would be halved.
The minimum fare would decrease from Dh17 to Dh15. The booking fee will increase by Dh2.
While you might automatically think any new pricing system is going to be bad for your wallets, the new structure could actually make your trips cheaper (if you travel on the right day, at the right time).
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For instance, a trip from Mall of the Emirates to Dubai Marina - a trip that generally takes about 20 minutes to travel 11 km, including a token two minute waiting time - would once have cost you about Dh42.13.
Under the new fare structure, it could cost either Dh41.15, Dh42.45, or Dh46.35, depending on what time and what day you wish to travel.
A spokesperson for Uber said the changes were "part of Uber’s ongoing commitment to remain compliant with local regulations".
"The changes will result in higher fares on some trips, while fares will be lower on other trips.
"Uber remains committed to providing riders across Dubai with a safe, reliable, and affordable transportation at the push of a button,” they said.
Here's a breakdown of the new pricing system:
Current fare structure:
- Static base fare: Dh8
- Distance: Dh1.83 per km
- Time: 50 fils per min
- Waiting charge: 50 fils per min
- Minimum fare: Dh17 (exclusing Dh3 booking fee)
New fare structure:
- Dynamic base fare: Dh5.40/ Dh6.70/ Dh10.60 (varies by day of the week and time of day)
- Distance: Dh2.25 per km
- Time: 25 fils per min
- Waiting charges: 50 fils per min
- Minimum fare: Dh15 (exclusing booking fee of Dh5)
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How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
At a glance
Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free
Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland
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Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
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Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza
New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner
Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)
Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am
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