Egypt’s ride-hailing services Uber and Careem are considering increasing their fares, while Ousta has already raised their fares in the wake of a surge in the price of fuel.
The government announced on Thursday raises in energy prices by 30-47 per cent, affecting the prices of 80-octane gasoline, which increased to reach LE2.35 per liter, instead of LE1.6; and 92-octane gasoline, which increased to LE3.5 per liter, instead of 2.6; while diesel increased to LE2.35 per liter from LE1.8. Meanwhile, natural gas used for vehicles increased to LE1.6 per cubic meter instead of LE1.1.
Careem’s General manager in Egypt Hadeer Shalaby said that the company is yet to increase its fares for riders, but had already raised the wages obtained by the drivers by around 10 per cent. “The company will temporary incur the cost of increase from its share, so that the drivers wouldn't be negatively affected,” Shalaby told Aswat Masriya.
The base fare for drivers now starts at LE3 instead of LE2. The drivers would also receive LE1.45 per km instead of LE1.4 in the new rate; and LE23 for waiting for one hour, marking a LE1 increase from the previous rate. The starting fare of economy rides for Careem users is currently at LE5, with LE1.5 per km.
Shalaby didn’t specify a date or rate for fare increases, saying they’re currently studying the impact of energy price increases on the prices of their services.
Uber Egypt is also assessing the current situation to “take necessary steps that would allow them to "adapt to changes in the market”, according to general manager Anthony Khoury. Khoury said that Uber drivers would temporarily receive a compensation of LE20 for every five trips, LE35 for 10 trips and LE50 for 15 trips.
“Uber will continue to provide a safe and reliable transportation and offer job opportunities,” Khoury told Aswat Masriya. Uber users currently pay LE3 as a starting fare and LE1.30 per kilometer.
Meanwhile, Ousta, an Egypt-based online taxi application, announced in a statement on Monday that the're raising their fares in order to be able to “continue providing competitive services.” They did not, however, reveal their new fares. Taxi drivers have already revealed they’d call on the cabinet to raise the fare’s initial charge from EGP 3 to EGP 5, along with an increase in the rate per kilometer from LE1.4 to LE1.75.
“Given that fueling up costs so much more now with the increase in the prices of regular and natural gas, we cannot continue with the current fares,” Salah Sedik, head of the White Taxi Drivers Coalition, told Aswat Masriya.
Egypt, scrambling to collect money as it faces a shortage in foreign currency, decided to raise energy prices a few hours after floating the Egyptian pound Thursday, in a bid to meet the criteria for a $12 billion loan from the International Monetary Fund.
