Rideshare company Uber to hike minimum fare in Adelaide by $2 to cover ‘operational costs’

Renato Castello, The Advertiser
May 29, 2017 2:50pm
ADELAIDE users of ridesharing service Uber will pay more after the company announced a $2 fare hike.
The minimum fare will increase to $7 from June 9, including a 55c booking fee to cover what an Uber spokesman says are “operational costs associated with providing a ridesharing service”.
“Following recent roundtable listening discussions with driver-partners in Adelaide, we heard that an important improvement Uber could make to the driving experience would be increasing the minimum fare,” he said.
Drivers will pass 50 cents of the booking fee to Uber and keep 5 cents to remit to the Australian Taxation Office as GST.
Uber already takes 20 or 25 per cent of the full fare, depending how long a driver has worked with Uber.
The State Government has separately levied a $1 charge on all taxi, chauffeur and Uber trips to fund a raft of industry reforms and to compensate taxi plate owners for the introduction of rideshare operators like UberX.
Uber says there will be no change to the amount returned to a driver as a result of its fare changes.
RideShare Drivers United, which represents Uber drivers, said the changes, while welcome, were still a “minuscule one”.
“Minimum fare trips make a very small percentage of trips in most cases,” it said in a statement.
“This very small minimum fare increase is not really going to make much of a difference to drivers bottom line. Most drivers we talked to view this latest Uber increase as an insult and a slap in the face.
“Even after this small increase, base rates are still at very low unsustainable levels, leaving drivers with well below minimum take home wage.
“We do however welcome the new approach now taken by Uber, a direct result of our advocacy work.”

Related Posts