In Chennai Uber costs Rs.6/km*. The general perception seems to be, “Uber is so cheap, it’s only 6 a km”. So even when there is a surge of 1.5x which is pretty normal nowadays, we do a simple math and come to a conclusion that it is Rs.9/km, still much cheaper than an autorikshaw, right? Wrong! the real cost is much higher than that.
What are the various cost components involved?
1. Per km cost – Rs.6
2. Base fare – Rs.30
3. Per minute – Rs.1
1. Cost for 10 Kms – Rs. 60 = Rs. 6/km
2. Base fare per Km – Rs. 30/10 = Rs. 3/km
3. Avg speed is 20km/hr (fact! much slower in more congested cities) = Rs.3/km (more costly in congested metros)
That comes to a total of Rs.12/km (WITHOUT SURGE!), but let’s be practical, when was the last time you wanted to go to office and there was not a surge of at least 1.5x.
So let’s factor that in. REAL COST IS Rs.18/KM @ a nominal surge of 1.5x
BTW, if the distance you travel is lesser, then you end up paying more per km. For ex. if your office is 5 Kms from your home. You will pay more Rs./Km on basefare – Rs.30/5 = Rs.6/km. So the total cost is Rs. 22.5/km @ 1.5x surge for a 5 km ride.
So next time you hail an Uber, just know that it is Rs.12/km without surge.
You can reach me @joejayanth