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Uber launches in Madrid the price system closed, as it does Cabify

The users of the transport application will know in advance the exact price of the journey, rather than a range of prices

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Uber launches in Madrid the price system closed, as it does Cabify

users of transport application will know in advance exact price of journey, instead of a price corridor

as of 22nd of September, customers of Uber in Madrid will know in advance and to penny how much it will cost m trip to chosen destination, instead of having to comply with a range of prices, as is currently case. The Spanish subsidiary of transport company, which has premiered at headquarters this Thursday in Madrid, follows in footsteps of Cabify and modifies its pricing system, with touch-ups in prices minimum, per kilometer and per minute. With se changes, says company, prices of journeys are abaratarán between a 4 and a 5% and increase income of drivers.

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Madrid is second european city with system of fixed price per journey, after a year and a half of running and a million downloads of app UberX, mobility. This is a funcionaliad y already had in or transportation applications, such as Cabify. As explained by Juan Galiardo, new director general of Uber Mobility to Spain, “ priority for users was to find out in advance how much would this cost service”. Thus, company has studied journeys made by users in madrid of application and has decided to implement a new system that, he says, will increase income of drivers, and will reduce up to 5% of price to users.

According to new system, minimum price per journey, fixed amount that you pay for a short that displacement goes from 5 to 5,50 euros; price per minute reduced by half, from eur 0.20 to 0.10; and price per kilometer rises slightly, from euros 1.15 to 1.25. With se new prices, analyzing traffic data, and distance, algorithm of application will set price automatically. Also take into account demand data, because Uber keeps price policy is dynamic, that is to say, of price changing in function of demand. In short, to do same journey will not cost ever exactly same.

Galiardo has justified changes in demands of users and also of drivers. “With a low floor, re were many short trips, which leads to inefficiency,” said Galiardo, picking up a complaint of drivers. With new prices, company is ensuring that routes are longer and more efficient. Equally, argues that new pricing structure is beneficial for users, since it lowers price by time, which can vary, depending of jams, for example. “We continue to be most competitive of market,” he said.

"Spain is back"

Asked about battery of measures announced by ministry of Development a few days ago, aligned with demands of taxi industry, Galiardo has declined to put a value on m for being in a preliminary phase of processing, but has not spared criticism of Government. “The Government should stop supporting monopoly of taxi, against interests of many citizens who demand alternatives,” he said. Also, it has charged against regulatory system Spanish on mobility, “one of most restrictive in Europe”, which does not allow m to, for example, operate in Barcelona. It has been reported that this summer half a million people, many tourists, have opened up application of Uber in Catalan capital, only to realize that re may not use it.

Has reported that “Spain is back” on regulation of new mobility, on contrary or countries, such as Portugal, which has set as an example by be getting a new law “modern” sector, which, among or things, does not set a limit for licensing VTC, with which y operate in Spain companies such as Uber or Cabify. In Spain, transport act sets a ratio ideal of a VTC for every 30 taxis, ratio that has been surpassed in almost all of Spain, to chagrin of taxi drivers. In this sense, has been justified on percentage of licenses VTC fact that Uber is not in Barcelona. "There is not sufficient density of VTC to be able to give an adequate service, without customer having to wait too long, driver," he explained.

The act has served to present new offices of Uber in Spain, a modern space, light and airy of around 700 square metres in which y currently work around 25 people and that going to be center of operations of company for south of Europe (Spain, Portugal, Italy, Greece, Turkey and Israel). Has decided to settle down in a building called The Cube, which will house an accelerator of start-ups.

The deployment of UberEATS

In presentation of its headquarters, leaders of Uber have also taken account of launch of UberEATS, application for distribution of food to home. After eight months of operation in Madrid, Manel Pujol, director general of UberEATS, has been very pleased to already have 700 restaurants employees and 100,000 downloads of application. Has announced that next year will open in three more cities, which, he says, are not yet decided. In addition, it has been shown excited at possibilities of growth, all while only 12% of food that is requested to address in Spain is asked for an application - rest is requested by phone, compared with 49%, for example from Uk. Has been estimated at 3,000 million euros a year by food business to domicile in Spain, fourth volume of EU.

After announce changes in application -you will not need a minimum order, fine-tune automatic recommendations and increase chances of filtering-marked distances with or competing companies in fact that y offer distribution fleets. "We offer restaurants option of someone to send food for m, and that y do not worry about more than cooking," said Pujol. That, he said, "makes many restaurants that until now were not raised in deal, can now do so easily", so that also increases supply of types of food that client can request.

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