Uber app in S'pore is well dead even before official May 7, 2018 end date

Just kill it already.

Belmont Lay | April 21, 2018, 04:41 PM

The Uber app in Singapore has become the most useless app in the country, as per Today.

Thousands of Uber drivers have jumped ship to Grab or transitioned back to traditional taxi companies following the March 26 announcement that Grab is acquiring Uber’s Southeast Asian operations.

The Uber app in Singapore was supposed to shut down but has been given a prolonged lease of life to enable drivers and commuters to transit out of the platform.

But the Uber app might as well be terminated at this point in time.

Further radius for pick up

Because there are so few drivers left on the Uber app, getting a ride is a nightmare.

It was reported that Uber drivers have to travel more than 10km at times to pick up the next passenger.

Previously, Uber drivers had to go no further than 5km to reach a rider.

And this means drivers can drive more than 15 minutes to pick up a passenger who only needs a ride that lasts three minutes sometimes.

Earnings plunged

More time on the road means higher fuel costs for drivers.

Uber drivers are feeling the drop in earnings by as much as half as they no longer receive incentives.

Previously, these could range between S$150 and S$500 a week if certain number of trips are completed.

One Uber driver said he used to earn about S$1,500 a week with incentives. Following the announcement of the deal, he is earning between S$700 and S$900 weekly.

Positive network effects contributed to Uber's initial uptick in users in Singapore, as more riders and drivers attracted even more riders and drivers to the platform.

A negative network effect of riders and drivers fleeing from the platform has effectively rendered the functionality of the app as useless.

Commuters wait 20 minutes for a ride

Uber commuters are also experiencing waits of up to 15 minutes for their drivers to arrive.

Some end up cancelling, which penalises drivers who might already be on the way to the pick-up destination.

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Background of Uber's demise

Singapore’s competition watchdog, the Competition and Consumer Commission of Singapore (CCCS), ordered Uber’s platform to run until May 7 as part of a slew of interim measures amid an investigation into Grab’s takeover.

It was previously set to cease its operations on April 17, a date already extended from its original deactivation date on April 8.

Uber drivers hoping to return their vehicles to Lion City Rentals (LCR) -- Uber’s vehicle-rental subsidiary in Singapore -- are facing a tricky situation.

They are under six-month or one-year contracts that impose a penalty for premature termination.

While LCR allows them to switch to Grab following the acquisition, not all are keen. Drivers have complained about Grab's less favourable terms compared to Uber.