How Uber is still making money in the UAE despite the fuel price hike.


Popular American e-hailing service, Uber has been experiencing their fair share of global heartburn. It is of a global concern that the price of crude oil has suddenly gone up, that it bites every country so hard.

A good example is Sri Lanka, where there is currently not even 1,000 Tonnes of fuel left for its citizen to use as of two weeks back. Earlier in the month, the country has struggled to pay for imports of goods to the country, among which are medicine and fuel.

Amid these global varying concerns on countries, you can imagine the effects of inflation, fuel scarcity, and increased cost of living affecting businesses and the average citizen in the UAE. Uber, just like any other company in the UAE is not finding it easy as well.

This article is intended to show how Uber has been able to provide online transport services at a time when fuel price is on the rise.

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Is Uber still in operation in the UAE?

Yes, Uber still renders service transport services to its customers as their ultimate line of business. This has been a commitment they have taken for the second time in the year despite the hassle and price of crude in the UAE.

It is recorded that this is the second time Uber has had to consider within the year. It is observed that the current price of petrol is three times more expensive than in Kuwait and almost double the average cost per liter in the six-member Gulf Cooperation Council.

But despite these hurdles, Uber still renders services to all of its customers. They have vehemently ensured that customers’ call for ease in transportation remains their priority. How was this done, especially as a business?

This is seen as a topic for concern beneath this.

How is Uber still in operation in the UAE with the going fuel price hike?

This is a question most people have been trying to inquire about, especially those not in the UAE. Uber has been able to maintain customer service with their clients by ensuring that the fuel hike does not disrupt their service.

One of the avenues they deployed is to notify their customers of the recent development and to increase their price after fuel was observed to have jumped over 80% of its usual pump price. Due to a rise in petrol prices that have exceeded hikes in nearby oil-rich states, Uber Technologies Inc. Had no choice but to up its fees in the UAE.

Uber Inc. was courteous enough to send an email to their clients beforehand to avoid being inconsiderate, announcing that some journeys will cost up to 11% extra.

How long will there be a fuel hike in UAE?

Although the government of the UAE has been kind enough to liberalize fuel prices to help rationalize fuel consumption for the masses and encourage the use of public transport in the long run and incentivize the use of alternative fuels, the fuel crisis experienced in the UAE and just about other countries is a ripple effect impacted by the ongoing global squeeze on energy prices, the war between Ukraine and Russia, and inflation.

To answer this question, fuel prices can only go down when the differences between the Russian and Ukraine war is settled, likewise, the inflation rate globally is addressed.

In conclusion, Uber may be seen as a virtual service provider and has made a success story of their stay with varying countries and their business opportunities, however, they also felt the blow of the post-COVID-19 and the emergence of inflation that they sought out a survival strategy to ensure they maintain dominance now more than ever.

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