Uber announces major price change
The rideshare giant has revealed a change in pricing that will kick in from Sunday.
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Ride share giant Uber will cut its fares by up to 5 per cent next month in an attempt to lure more customers into the service but the move has been slammed as “infuriating” by drivers and labelled as further “exploitation” of vulnerable Australians.
Uber currently takes a 27.5 per cent cut from the money driver’s earn from fares, while the gig workers also have to pay GST out of their own earnings.
It sent an email to drivers this week announcing incoming changes to fare prices from August. It said it reviews “pricing on an ongoing basis in an effort to balance a quality, reliable service for riders, with compelling earnings opportunities for driver partners”.
“We will be changing the time and distance rates used to calculate rider fares.” the email read.
“The changes will include different time and distance rates based on geography, as well as the time of the trip.
“In most cases, the rates will be lower than those currently used. We anticipate that these changes will lead to an increase in rider demand and result in more trips for driver-partners.”
The changes to pricing will take place from August 7.
A McKell survey of transport gig workers done last year found three-quarters work long hours to pay the bills, while two-thirds of full-time workers earn less than minimum wage.
One Uber driver, who wanted to remain anonymous, slammed the move by the rideshare giant.
“With everything getting more expensive and people looking to earn more, it is infuriating that Uber thinks it’s a great idea for us to make less going forward,” he told news.com.au.
“More trips to compensate the loss of income means we need to be on the road for longer and do more kilometres. Is Uber going to ask the petrol companies to slash their prices by 5 per cent as well?”
The Transport Workers Union Uber warned rideshare drivers are facing cuts to their earnings from next month as the gig economy continues to spiral without the safety net of enforceable standards.
Rideshare drivers are once again bearing the brunt of a market that’s been battered by an absence of regulation, added TWU national secretary Michael Kaine said
“Some of the most vulnerable and underpaid workers in our economy are once again facing cuts to their earnings in a market that’s in free fall. Rideshare drivers with no rights to minimum wage or other entitlements have spent the night wondering how they’re going to pay the bills next month,” he said.
“This is a direct consequence of a decade of the Coalition Government rolling out the red carpet for gig exploitation disguised behind shiny new apps, without putting in place protections for workers.”
The Albanese Government has introduced world-first legislation to give rights to these workers, but standards continue to spiral while laws get off the ground, he noted.
“The longer it takes for a minimum standards order to be determined, the lower pay and conditions will sink,” he said.
“We need to see the industry come together with maximum support for early minimum standards orders so the process can move as efficiently as possible to stabilise the market.”
Stopping the free fall with a safety net of binding standards that can be built up over time is critically urgent for gig workers and companies alike, he added.
The TWU has called on all industry stakeholders to get behind urgent minimum standards applications as soon as new laws come into effect to begin building a safer, fairer industry for workers, companies and customers.
World-first legislation empowering the Fair Work Commission to set enforceable standards for gig economy workers in transport was passed by federal parliament in February and will soon be enacted.
Uber has been contacted for comment
Originally published as Uber announces major price change
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