Australians could face a 140 per cent price increase in rideshare fees during Christmas and New Year

Aussies could face a massive hike on rideshare fares in coming weeks. See why and the staggering prices you could be paying.

The convenience of a rideshare home over the Christmas and New Year period could come back to bite financially, with price surges of up to 140 per cent forecast.

Soaring petrol costs and a shortage of international student drivers are among some of the reasons why riders will be see a spike in the number of peak period surcharges.

“If there’s more drivers and cars available, then there’s less likelihood of a surcharge,” Queensland University of Technology’s consumer and marketing expert Dr Gary Mortimer, said.

“If there’s fewer drivers available, normally the surcharge goes up and drivers become more selective. I think the other impacts of course are the rising costs of fuel price.”

“I think the other factor is that we just haven’t had international students in the country (since the Covid pandemic hit in 2020) and they would’ve often taken up a lot of these driver roles.”

Aussies could be hit with 140 per cent increase on rideshare providers this festive season. Picture: NCA NewsWire / David Geraghty

New data by travel comparison app Placie found Sydneysiders paid the most on average per km for rideshares ($4.53) and taxis ($5.39), while Adelaide paid the least for rideshares ($2.95) and taxis ($3.90).

Meanwhile, Queenslanders paid $3.79 per km for rideshares and $4.28 on taxis, while Victorians paid $3.24 for a rideshare and $3.93 for a taxi.

The biggest surges being tipped for the first three weeks of December are between 4pm and 8pm on Saturdays and 12am to 4am on Sundays.

During the peak times last year, Placie saw trips increasing by nearly 140 per cent at times as an average $30 ride skyrocketed to $71.61.

The warning comes amid claims some taxi drivers in NSW are refusing to turn on their meters and forcing passengers to negotiate a set fare before letting them in their vehicles.

Chief executive officer of the Australian Taxi Industry Association, Blair Davies, said unlike rideshare companies, taxis did not engage in surge pricing.

“I think we’re heading into a season which could be problematic because both the rideshare industry and the taxi industry are really struggling for drivers,” he said.

“There will be lots of people out partying and also the risk of another Covid wave which may see people either not going out, or opting not to use public transport.

“But the fundamental difference between taxis and rideshare is we don’t have surcharges.”

Singer and actor Casey Donovan used to drive for Uber. Picture: Dylan Robinson

Singer and former Australian idol winner Casey Donovan saw first-hand price surges when she spent time as an Uber driver.

She said drivers usually didn’t get notified ahead of time when surcharges were going to be put on rides.

“I’d see surcharges happening when there was a high demand for rideshare, like when people were commuting home and there was standstill traffic,” she said.

“Or in the early hours of the morning on a weekend when people were trying to make their way home from a night out. But really, surging was unpredictable.”

Donovan encouraged riders to look around before booking in their trip.

“Rideshare pricing is unpredictable and it always will be,” she said.

“No two services will ever see the exact same price increase and I feel it is less about warnings, and more about education and choice.”

TIPS FOR RIDERS

• Surge pricing often occurs during rush hour, bad weather, public holidays and special events. Wait a couple of minutes and try to book again to see if the price has lowered.
• Shop around: while surge pricing is relatively consistent across most of them, it can help to check all ridesharing apps before your trip as often they won‘t all have a surge at the same time.
• You can compare and book rideshare and taxi services via Placie app
• Opt for a taxi where possible

Originally published as Australians could face a 140 per cent price increase in rideshare fees during Christmas and New Year