Uber starts operating in Ukraine

Ukraine’s private taxi industry is going to have to smarten up its act.

Multinational online transportation network Uber Technologies Inc. launched one of its most popular low-cost private car services, UberX, in Ukraine on June 30.

Ukraine will join 74 other countries in which the company offers its services.

“We want to become part of (Ukraine’s) life, starting our operations in this dynamic and promising city,” Uber General Manager in Eastern Europe Anthony le Roux said at an Uber press conference in Kyiv on June 30. “Kyiv, Ukraine – welcome to the Uber family.”

Uber Ukraine general manager Arkadiy Vershebenyuk (L), Kyiv Mayor Vitali Klitschko (C) and Uber General Manager in Eastern Europe Anthony le Roux talk to journalists at the June 30 press conference in Kyiv. © Uber

U.S. company Uber, headquartered in San Francisco, California, develops, markets and operates a mobile app that allows consumers with smartphones to submit a trip request, which is then routed to Uber drivers, who use their own cars.

It will cost Hr 25 to order a ride in Kyiv, and then Hr 4.50 per kilometer and 40 kopikas per minute. The minimum fare is Hr 40. As an example, to get to the VDNKh exposition center from Kyiv’s main railway station will cost up to Hr 88, while a ride from Kontraktova Ploscha to Sofiyevska ploshcha square will cost about Hr 40.

Fares are evaluated by the Uber system. After each ride, Uber users receive an e-mail with route details, the time, and information about the driver and transaction.

Payments are cashless – the Uber smartphone application connects to the user’s bankcard and automatically carries out fare transactions.

Kyiv Mayor Vitali Klitschko was one of the first users of the service.

“With the launch of Uber in Kyiv, those who are now familiar the company’s services in London, Paris and other cities will be able to move around our city in the same convenient way,” Klitschko said on June 30. “Besides, the service ensures transparency and legality for local business.”

Up to July 3, Uber users will qualify for five rides for free, as long as each ride costs less than Hr 150.

Drivers pay 25 percent of their income to Uber, but they also get a Hr 50 per hour salary from the U.S. company if there are no orders, they have a rating of not less than 4.7, and they are parked in the downtown area. Salary payments will be made every week.

Uber requires its drivers to be officially registered, either as an individual entrepreneur or as a company.

During the first 30 days, drivers will be allowed to work without a certificate showing they have a clear criminal record, and without a cab driver’s license. However, if they don’t obtain these within a month, their accounts will be blocked.

Using Uber, clients rate drivers and vice versa to ensure the best experience for both. When ordering a taxi next time, users see the driver’s name, rating, photograph and car details. Users can contact a driver via the app, and they get a notification as soon as the diver arrives.

Cars must be clean and insured. Cars have to be of class B or higher, such as the Toyota Corolla, Kia Rio, Hyundai Accent, Volkswagen Polo, Chevrolet Lacetti and others. Cars cannot be more than eight years old.

Founded in 2009, Uber now employs about 6,700 people. The company was estimated to be worth $62.5 billion by late 2015.

“I anticipate Uber will establish quality standards for taxi services in Ukraine,” Creative Quarter CEO Ilia Kenigshtein said at the June 30 press conference. “Uber is a barometer for other global companies to enter Ukraine. I hope (PayPal) will be next.”