Uber expands flexible pricing service to more tier 2, 3 cities in India

Ride-hailing major Uber is now testing its flexible pricing service in several tier 2 and 3 cities in India to expand its user base, allowing commuters to bid a particular fare for their ride.

Caller Uber Flex, the flexible pricing service was tested for the first time in India in October last year.

According to TechCrunch, the service has now been expanded to cities like Aurangabad, Ajmer, Bareilly, Chandigarh, Coimbatore, Dehradun, Gwalior, Indore, Jodhpur and Surat, among other cities.

“We are piloting this feature in some of the tier 2 and 3 markets in India currently,” an Uber spokesperson said in a statement.

Uber Flex is also being tested in Lebanon, Kenya and Latin America.

Unlike Uber's standard pricing model, Flex allows riders to bid a fare of their choice from nine pricing points, with a default price selected.

Riders can select a fare that will be shared with nearby drivers, who can then accept or reject the ride based on the offered fare.

Drivers similarly have the option to quote their rates to the user.

They can pick whichever driver's offer catches their eyes and then, the ride is confirmed.

Another ride-hailing app inDrive currently allows riders to manually input a specific fare.

Last February, inDrive raised $150 million, saying it would use the funds to acquire and retain customers and support its continued growth.