Punters hopping a ride in an Uber across Melbourne will have to prepare themselves to fork over a tiny little bit more for their lift, with the ridesharing company announcing that they will be increasing fares across the Victorian capital from today.
The price hike is a company decision made in response to growing disquiet amongst its driving fleet over working conditions and pay, and ensures drivers are paid more per fare.
The new price structure will see consumers using UberX charged $1.15 per kilometre, an increase of 15c from the previous mark of $1 per km. Time spent idle while on-board will also increase from 32c per minute up to 35c per minute.
The standard base of $2 will remain unchanged, as will the booking fee of 55c. Uber’s percentage of each fare remains at 20 – 25%, with drivers pocketing the remainder.
This price increase means that a fare that would’ve previously cost you around $19 will now cost you a smidge over $21, distance and traffic pending.
Similar price increases will also be applied to UberXL and UberSelect services. The increases are also set to be rolled out across other Victorian cities.
Uber’s Victorian general manager Lucas Groeneveld stated that the increase was approved after a consultation process with the driving fleet in an attempt to better reflect and compensate the time and effort the individual drivers are putting in to their jobs.
With this in mind, we’re making changes to better reflect the time and effort involved in getting riders where they need to go.
Uber had previously cut fares in Melbourne in May of 2015, and April of 2016, sparking outcry from the company’s drivers.