Uber warns of higher prices and longer wait times following Toronto’s decision to freeze new licences (Reuters)
Uber has announced higher prices and longer wait times in Toronto and other regions in its latest monthly report, blaming the city’s new licence freeze for a 10 per cent rise in Uber’s prices in January.
The ride-hailing service said that as a result it has launched a “more aggressive pricing strategy to deal with the immediate cash-flow issues as we expect increased demand and customer uncertainty from the suspension of the city’s new license.
“The company’s pricing strategy has been guided by the belief that it will be the least-cost option in an environment where demand is expected to increase and market fundamentals have yet to stabilize,” the report said.
“We are working directly with customers to understand their perspectives and communicate directly with them as we make decisions for the future.”
The latest price rise may be enough to push some drivers back into their cars. Uber’s rate hike will be on top of a 10 per cent increase they took last month.
Uber has also been making some changes to its service areas in response to the city’s licence freeze. Uber Toronto, based in the city of Toronto, is now in nine new cities in California and the US, in addition to Toronto, as well as in Canada’s capital city of Ottawa. In an email to staff this week, Uber said that service would be expanded to Ottawa in the coming weeks, where it currently does not offer trips.
“We are notifying riders through email and through our app,” the email said. “There are new trips in the coming weeks in Ottawa, and riders who are currently in use will be able to adjust their routes and use our Uber Line service.
“We value every Uber driver and their contribution to the Toronto community and we are committed to working with them in any way possible to make the experience