Just in time for the freakin’ weekend, getting around in Melbourne is suddenly ever-so-slightly more affordable.
With the introduction of 24-hour public transport on weekends, ride-sharing service Uber has today dropped yet another bombshell on the taxi industry by announcing that it has slashed UberX fare prices by 15%.
The price cut, effective only in Victoria, is being implemented immediately for its controversial but hugely popular service.
In a statement posted to their website this morning, Uber claims that the price reduction is a mutually beneficial move for both riders and drivers, with increased demand resulting in more requests for rides and, thus, more income for drivers.
“After almost two years of the uberX service in Victoria, we’ve learned that one of the best ways to increase driver-partner efficiency is to boost demand for rides. And one of the most effective ways to boost demand is to cut prices for riders.
That’s why today, Uber will be introducing a 15% reduction in uberX prices to get more riders on the road taking more trips, and in turn increase driver-partner earning potential.When we reduced uberX prices in Melbourne last year, the result was many more people choosing uberX to get around, and Uber’s driver-partners spent less time online waiting and more time on trips, creating a more efficient use of their time.”
Although the move is being met with some pushback from drivers, with Fairfax Media reporting that some disgruntled operators are considering strike action.
The service is still technically not sanctioned by legislation in Victoria, but it continues to operate virtually unabated despite courts ruling that UberX drivers are operating as unlicensed private drivers.
The price cut means that the Uber’s price per kilometre in Melbourne down to a flat $1. Fares from the city to the corner of Brunswick and Johnston Streets will now cost roughly $10, whilst a ride from the city to the airport comes down to approximately $42.
Source: Uber.
Photo: Ullstein Bild/Getty.
