Saturday, 6 February 2016


Uber operation cuts fares while promising soaring profits 

It is more of a holiday tradition for Uber: announcing low fares in New Year. Amid a price war with rival online taxi service Lyft, the leading online taxi service Uber reduced its rates by 10% to 45% across 100 cities in North America. In fact, Uber drivers’ in Detroit per-mile rate is less than it takes to cover the gas and the depreciation of their cars, according to IRS figures. The vibe is not great among Uber drivers “I’m not happy, GONE DAYS WHEN IT WAS GOOD”, says Andrew Smith in Detroit.

This is the third consecutive year when Uber has slashed fares in January. It calls the cuts seasonal but says they could last indefinitely. Since last year rates never raised again almost a third of cities; only in two did they return to precut prices. Uber has promised temporary hourly wage to bridge the gap in drivers’ earnings, which assured Uber drivers to come out ahead by making more trips an hour thanks to increased demand. A few months ago, Uber CEO Travis Kalanick told employees that North American operations would turn profits in the second quarter of this year.

However profit target sounds less realistic in light of the price cuts. “Uber has to sacrifice profits for growth,” says Evan Rawley, a professor at Columbia Business School. “We care deeply about driver earnings,” says Andrew MacDonald, a regional general manager for Uber. “We believe in price cuts when demand slows.” The Rival Taxi Service Lyft announced to cut fares on Jan. 15. Lyft send an e-mail newsletter stating “With recent price changes from the competition, we need to take action”. Lyft also announced a $1 billion round of funding on Jan. 4 to help keep its pink-mustachioed cars on the road, which brought its fundraising total to $2 billion – a ways from Uber’s $10 billion, but enough to dash Kalanick’s hopes of Knocking Lyft out of the market. Moreover, Uber is also churning through cash a lot faster than Lyft, on that note it will spend billions to push its way into China, India and Southeast Asia.

In the first quarter of last year, Uber lost $385.1 million on $287.3 million in revenue, according to leaked figures published by the Information, a tech news website. And Uber losses have grown to $697 million in $498 million in revenue during third quarter, according to a person briefed on the numbers. Over the first three quarters of 2015, Uber lost $1.7 billion on $1.2 billion in revenue. In comparison, during’s worst-ever four quarters, in 2000, it lost $1.4 billion on $2.8 billion in revenue. CEO Jeff Bezos reduced 15% of his workforce. Globally, Uber tends to lose money per ride, but ridership is growing. Total trips increased about 40% from the second to the third quarter of 2015, says a person familiar with the data.

On a November call with investors, acting Chief Financial Officer Gautam Gupta said the company is profitable in two of its biggest countries, though he wouldn’t name them. Even with lower fares in North America, Uber has inched towards profit, in large part by leaning harder on drivers. It takes as much as 30% of a driver’s fares now, up from 20% two year ago. Since 2014 UPFRONT RIDERS FEE goes directly to Uber, which started at $1 per ride; it’s up to $2.5 in some cities. User has said it uses the charge to help fund things such as safety education and background checks.

If drivers win the rights as employees or manage to form unions, Uber may be forced to change strategies. But for now, a steady influx of contractors means the company can get away with added fees and rate cuts, a clear vibe among Uber drivers. While veterans complain that rates used to be higher, he says, “The new guys just don’t know”.

Written By: Zeeshan Yousaf
Momentum Technologies

Thursday, 10 April 2014

Sunday Fun Day!

(Karachi): Orange Tree Foundation and Children Cancer Hospital have joined hands to organize a Family Carnival - 'Sunday Fun Day' at The Forum Mall, garden area on the 13th of April, 2014 between 4-10 pm. 

The carnival expects to target 6000 people including kids between the ages of 3-13 and their families. Among several attractions at the Carnival are the Arts & Crafts, White Elephant Sale, and more than 30 food and games stalls.

Orange Tree Foundation and Children Cancer Hospital are supported by organizations and schools including Mothercare International, Bayview Academy, Rasala, Hiba Magazine, KGS, Learning Tree, Whiz Kids, CAS, Links, Mrs Haque's, FPS, City School DK, Froebels, Pepsi, KFC, Dunkin Donuts, FM 89, Shield, Integrated People, Espresso, H. Nizam Din, Muslim Awareness Programe, Al Ilm, Al Kauthar, Diabetic Society and many others.

All proceeds from this exclusive event for families go to Education of Children from financially challenged families in mainstream schools and Cancer Treatment of Children irrespective of their paying abilities.

About Orange Tree Foundation
Orange Tree Foundation is a not-for-profit Educational Society working to support education of deserving kids in mainstream schools through its Montessori & Mother’s Training Program. The program targets Karachi-based working families who are financially challenged yet at the same time, eager to provide the best available education standard to their children. For more details contact

About Children’s Cancer Hospital
The Children’s Cancer Hospital (CCH), is the only hospital in Pakistan dedicated to cancer treatment in children, irrespective of their paying abilities.

Thursday, 3 April 2014

IDG Chairman and Founder Passes On

Karachi/Boston, 24th March 2014 - IDG Chairman, Founder and world-renowned philanthropist, Patrick J.McGovern, passed away on the night of 19th March 2014 at Stanford Hospital in Palo of causes unknown. 

McGovern will be known for founding the International Data Group that began with the IDC In 1964 initially to provide the industry with timely statistics on information technology markets. Three years later, McGovern launched Computerworld to keep computer buyers abreast of industry and product news. From then onwards, over a span of 5 decades, the IDG portfolio has grown to accommodate more than 300 magazines and newspapers and championed the expansion of IDG’s network to include more than 460 websites, 200 mobile apps and 700 events worldwide. IDG had made the word more prosperous by making it smarter.

Regional Managing Director and Publisher of IDG products in Pakistan, Afghanistan and Tajikistan, Salaina Haroon, while offering condolences on the occasion stated that, “McGovern’s religious commitment to bringing buyers and sellers together in the global context earned him the reputation of being called an ICT visionary. He firmly believed in ‘Thinking globally’ and ‘Acting locally,’ and it is what has kept the IDG brand profile from stronger. Pakistan has gained a lot of ground ever since the parent company came home. Here’s hoping we all here at IDG in Pakistan be able to keep McGovern’s vision for IDG alive.” 

Amongst the many accolades bestowed upon McGovern include: “25 Entrepreneurs We Love” for “knowing the power of respect” by Inc. magazine, The James Smithsonian Bicentennial Medal from the Smithsonian Institution, The Entrepreneur of the Year from Ernst & Young and the Entrepreneurial Leadership Award from the MIT Enterprise Forum of Cambridge, Inc. IDG will remain a privately held company overseen by its current Board of Directors. Walter Boyd, former IDG President, has been elected Chairman of the IDG Board of Directors.

About IDG: International Data Group (IDG) is the world's leading technology media, events and Research Company. IDG’s media brands – including CIO®, CSO®, Computerworld®, GamePro®, InfoWorld®, Macworld®, Network World®, PCWorld® and TechWorld® – reach an audience of more than 280 million technology buyers in 97 countries. IDG’s network features 460 websites and 200 print titles spanning business technology, consumer technology, digital entertainment and video games worldwide.

Wednesday, 24 April 2013

Salman Butt ready for anti-corruption rehab

Salman Butt ready for anti-corruption rehab

Earthquake waves felt across Pakistan and India

6.2-magnitude earthquake, centered in South-eastern Afghanistan at a depth of 70km, sent tremors across Khyber Pakhtunkhwa and Punjab at 2:25 pm
The quake was first reported in Peshawar causing a ripple effect as far as Lahore.
People came out of their offices and homes, and areas close to the epicenter felt the most tremors.
Many cities in Punjab and Khyber Pakhtunkhwa including Naushera, Murree, Lahore, Waziristan, Charsaddah, Malakand, Swat, Chitral, Azazd Kashmir experienced the shock waves.
Tremors were also felt as far as India and Afghanistan.