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Monday June 3rd, 2024

Sri Lanka’s PickMe started surge pricing to bridge supply gap: official

ECONOMYNEXT – Sri Lanka’s PickMe, a ride-hailing company had introduced surge pricing in November to bridge a supply gap during peak times, an official said, ahead of an expected initial public offering (IPO) of the firm later in 2020.

There had been speculation on social media that surge pricing was introduced to make PickMe attractive for public investors ahead of its IPO, but Marketing and Communications Head Gowshik Sathiyasiva denied such claims.

Sathiyasiva said surge pricing was introduced to encourage drivers and boost capacity.

“We introduced surge to match demand to supply and in order to achieve that we have to make sure that we match excess demand with the supply,” he said.

Sathiyasiva said surge pricing is still at a test phase and PickMe has not decided whether to continue the feature in the future. Customer feedback will be critical on the decision, he said.

Passengers told EconomyNext that they use PickMe because it is comparatively cheaper to Uber when the latter is on surge as demand outstrips supply.

Surge pricing incentivizes drivers, Sathiyasiva said.

“Apart from the salary we offer and the incentives, we give life insurance to our drivers and their family free of charge; it (surge) is in a way to help them earn more income.”

“This is not entirely about surge pricing but more of an incentive for our drivers to work too,” Sathiyasiva said.

During peak hours, PickMe drivers turn off their meter and charge higher prices from those travelling to the outer suburbs of Colombo, commuters say.

PickMe’s main competitor Uber had surge pricing since its Sri Lanka launch in 2015.

PickMe Founder Chairman Ajit Gunawardene last November was quoted as saying in Sri Lanka DailyFT newspaper that a public listing was planned for 2020 and, and the firm was worth 12 billion rupees before its fourth funding round, placing the ride hailing firm among the top 45 listed firms.

US-based ride hailing apps such as Uber and Lyft which went public in 2019 have seen big losses due to driver and rider incentives, insurance, research and other costs.

IPOs of both Uber and Lyft were flops. Prices of both Uber and Lyft had fallen after listing, and and investors have been pushing the firms to present plans to become profitable.

Analysts have said that new economy businesses are staying private for too long, and are pushing up their valuations through private fundraising rounds, which are being used to expand into new markets and accelerate research and development.

In the end, private investors profit at high valuations and dump the losses to public investors, analysts have said.

(Colombo/Feb17/2020)

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  1. Karunakaran says:

    How many vehicles do they own to value their assets at 12billion. Do they say their app is valued at 12 billion. They survive because the Indian stuff gives good performance in km/litre.
    Trying to show black magic

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Your email address will not be published. Required fields are marked *

  1. Karunakaran says:

    How many vehicles do they own to value their assets at 12billion. Do they say their app is valued at 12 billion. They survive because the Indian stuff gives good performance in km/litre.
    Trying to show black magic

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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