Uber to drop fares after change to time, distance calculation

Uber will drop its rates next month after changing how it calculates fares, based on time and distance driven, in a win for cash-strapped customers. But drivers are nervous their income could be cut. SEE WHEN, HOW MUCH FARES WILL DROP

Uber will lower their fares after a change in time and distance calculation. Picture: NCA NewsWire / Sarah Matray

Ride share giant Uber will drop its rates next month after changing how it calculates fares, based on time and distance driven, in a win for cash-strapped customers.

But drivers are nervous their income could be cut despite claims from the US-based company that they will benefit from more rides.

A spokesman said the change would affect riders and drivers across Australia from August 7.

“We review our pricing on an ongoing basis and have communicated to drivers our plans to adjust rider fares across Australia,” he said.

“Our aim is to continue providing quality, safe and affordable rides for Aussie passengers while creating compelling earnings opportunities for drivers.”

Uber estimated the average ride fares will drop by just under five per cent across the country.

In a written statement received by a driver, Uber said the company expected the change would lead to an increase in rider demand and result in more trips for drivers.

It described the changes as offering “compelling earnings opportunities for driver partners’’.

“The changes will include different time and distance rates based on geography, as well as the time of the trip,” the statement read.

“In most cases, the rates will be lower than those currently used.

“We will provide more information to you on the new time and distance rates for your city, broken down by time and geography as applicable.”