Taxi boss slams Uber NYE ‘price gouging’, claims it will encourage drunks to drive
THE head of Australia’s taxi industry has slammed Uber’s “exploitative” surge pricing and claims it will encourage drunks to jump behind the wheel.
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UBER, taxi, bus or train?
As Australians around the country prepare to head out for New Year’s Eve celebrations, revellers are being urged to plan their return journey ahead of time.
More than 1.5 million Australians have already downloaded the Uber app, and the ride-sharing service is expecting a spike in downloads.
But Uber is warning users ahead of time to be aware of its controversial “surge” pricing, which temporarily jacks up fares in peak demand times ostensibly to attract more drivers to the area.
The peak demand period will be between 12:30am and 4:30am, so riders wishing to avoid higher fares are encouraged to either leave either straight after midnight or hang around until prices return to normal.
“The festive period is one of our busiest times of the year, as more people require transport to get to and from Christmas and New Year’s parties and events,” an Uber Australia spokesman told news.com.au.
“To help accommodate for this increase in demand, we actively encourage more driver-partners to get on the road over the festive period. This is particularly important given some of our busiest nights of the year take place in December.
“We’d encourage riders to get a fare estimate, which is always available in the app or on our website, before requesting a ride.”
But the head of Australia’s taxi industry peak body has slammed Uber’s surge pricing and claims it will encourage drunks to jump behind the wheel.
Blair Davies, chief executive of the Australian Taxi Industry Association, has described surge pricing as “exploitative price gouging”.
“It has little to do with driver supply and all to do with taking advantage of shortage in supply to gouge more money out of consumers,” he told news.com.au “It’s an exploitation of a circumstance that disadvantages the consumer.”
A recent study from Northeastern University in the US may support that argument. Researchers there found many drivers actually leave surge areas in anticipation of fewer people ordering rides, ProPublica reported.
“What happens during a surge is, it just kills demand,” computer scientist Christo Wilson told ProPublica. “So the drivers actually drive away from the surge.”
Uber told ProPublica that its own analysis showed surge pricing does attract more drivers to surge areas. “Contrary to the findings in this report — which is based on extremely limited, public data — we’ve seen this work in practice day in day out, in cities all around the world,” a spokeswoman said in the article.
The ATIA’s Mr Davies also raised safety concerns about UberX drivers ahead of the busiest night of the year.
“The notion that you’re going to encourage people who are home, possibly drinking, possibly partying, to jump in their car and provide a transport service for strangers is really quite bizarre,” he said.
“We [also] think it’s quite amazing the government’s aren’t requiring security cameras in UberX vehicles. They will, we would expect, be out there tonight trying to serve folk who’ve potentially had too much to drink, and they will misbehave.”
Uber declined to respond to Mr Davies’ comments. UberX has around 20,000 drivers across Australia, with 6,500 in Melbourne, 5,000 in Sydney, 4,500 in Brisbane and the Gold Coast, and 2,200 in Perth.
The NSW government gave Uber the green light to operate earlier this month, after the ACT became the first state or territory in Australia to legalise the ride-sharing service. Under the new arrangement, Uber drivers will pay a registration fee of $45 and will be subject to criminal and safety checks.
Both taxi and Uber drivers will have to pay the state government a $1 levy per trip for a maximum of five years to fund a compensation package, budgeted at $250 million, which will see taxi plate owners receive a $20,000 cash payment.
According to a study by comparison website Finder.com.au, UberX is around 30-40 per cent cheaper than hailing a taxi, with the savings normally greater when the distance travelled is shorter.
UBER’S TIPS FOR RIDING ON NYE
• Check the fare: Get a fare estimate in the app and avoid higher fares by heading to the festivities early or catch a ride right after midnight.
• Split the fare: Use fare split if you’re riding with one or more other people.
• Confirm your driver: You wouldn’t want to walk into the wrong party, so make sure you don’t walk into the wrong car. Confirm your driver’s car model and registration number in the app before you hop in your ride. And if you’re still not sure, you can always text or call your driver.
• Send your status: Let your friends count down to the moment you arrive. Send trip details —— which includes your estimated time of arrival as well as your driver’s first name and vehicle information —— to friends or family directly through the app.
Source: Uber Australia
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