Uber introduces bid on ride fares in select cities

Uber launches Flex in India: Uber has started its pilot initiative named 'Flex,' enabling riders to customise their fare rates by bidding on specific rides. The ride-hailing giant initiated trials for this flexible pricing mechanism in October of the previous year. According to media reports, Uber confirmed the expansion of the Flex service to over a dozen Tier 2 and Tier 3 cities in India, including locations such as Aurangabad, Bareilly, Ajmer, Chandigarh, Coimbatore, Dehradun, Gwalior, Indore, Jodhpur, and Surat.

Originally introduced for cab services and subsequently extended to auto-rickshaw journeys, Uber Flex diverges from its conventional dynamic pricing model, which adjusts fares based on regional traffic and demand dynamics. 

How does Uber Flex work?

The Flex system offers riders the flexibility to select from nine distinct fare options, with one predetermined price serving as the default setting. Upon selecting a preferred fare, this information is relayed to available drivers in the vicinity, who have the discretion to accept or decline the proposed rate. This approach mirrors the bidding system employed by Uber's competitor, inDrive.

However, Uber has instituted a minimum fare threshold within the Flex pricing framework, distinguishing it from inDrive's unrestricted bidding mechanism. Presently, the Flex feature is accessible for Uber Go rides and extends to inter-city travel, with potential future expansions to include Premier cabs and auto-rickshaw services.

In addition to its operations, Uber is piloting the Flex feature in other international markets such as Lebanon, Kenya, and select Latin American countries. Sources indicate the company's intention to introduce Flex in major metropolitan areas, including Delhi and Mumbai, in the foreseeable future.