Uber has shut down its autorickshaw service UberAUTO in Coimbatore and Indore. In a blog post, Uber said that it had discontinued the service from March 6 and encouraged users to book an UberGo cab instead in Coimbatore. Meanwhile, the company has not issued an official statement about shutting down UberAUTO in Indore but the option is not available on the app currently.
Note that Uber has not provided any reasons to why they shut down the service in the cities. MediaNama has sent the following questions and will update once we hear from them.
UberAUTO was introduced in April 2016 in Coimbatore and in May 2016 in Indore. It had revised the UberAUTO fares upwards in November 2016 in Coimbatore. It used to charge a base fare of Rs 25 from the earlier Rs 15. The company used to charge customers Rs 6 per kilometer from the earlier Rs 3 per kilometer. Cancellation charges were increased to Rs 25 from Rs 15. Meanwhile, Uber used to charge Rs 3 per kilometer in Indore with a base fare of Rs 15 in Indore.
Note that Uber had paused its autorickshaw services in the country in December 2015 and reintroduced the service in April 2016. At the time, the company said that it was temporarily removing the product “to solve specific problems that need to be resolved to help it scale.”
Meanwhile, autorickshaw aggregator Jugnoo is capitalizing on Uber closing down the service and said that ‘demand’ for its services doubled in Coimbatore. Note that Jugnoo introduced cab services in Gurugram following driver protests in Delhi. Uber’s main rival Ola had introduced autorickshaws back in 2014.
Note that the company has been increasing its fares across services in all cities. In Mumbai, the company hiked its ‘ride time fare’ by 50 paise per minute on uberGO and uberX rides, and also increased base fare for uberX by Rs 5 per km. It had earlier hiked fares in Delhi to Rs 1.5 per minute on all of its rides, bringing up fares by about 10-15% in the city. The company also changed the pricing in Pune to Rs 15 per kms after the first 15 kms.