Ride-hailing service Uber on Thursday announced an up to 20 per cent reduction in rates for its UberGo offering in Lahore and Karachi and the introduction of its premium UberX service in Pakistan.

Both customers and driver-partners are poised to benefit from the development, Uber claimed in a press release announcing the price cut.

General manager for Uber in Pakistan, Safee Shah, explained, "We are committed to driver-partners and that Uber remains an attractive option for them ─ without them, we can’t help keep our Pakistani cities moving."

"We believe these price changes will help increase demand ─ meaning more paying passengers in drivers-partners vehicles and less dead kilometres between paying trips," he added.

"And while each city adjusts to the new prices, we are putting in place payment guarantees for driver-partners. Partner economics will be closely monitored every day to ensure that drivers using our app continue to thrive," Shah said.

Shah also announced the introduction of Uber's high-end UberX category in which "riders will have access to premium cars at reasonable prices."

With the introduction of the latest UberX service, riders will now have three types of rides available to them through the Uber app, UberGo, UberX and UberAuto.

The three options provide riders with options at different price points, and in doing so are aimed at generating more economic opportunities for drivers-partners, Uber said.

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