Cabs surge ahead of Uber in price wars

Surging Uber prices in Melbourne are forcing people to shun the once popular ride share service in favour of taxis.

Passengers are turning back to taxis in Melbourne in droves as Uber prices continue to soar during peak times.

Demand for taxis has doubled in recent months with high Uber prices forcing people to look elsewhere.

Uber established itself as the market leader in recent years, with a 2019 Roy Morgan report finding it had become the most popular private transport option.

But skyrocketing surcharges are beginning to reverse that trend.

Surcharges are applied at peak times when demand is high, which Uber says ensures those in need of transport can still acquire it when driver supply is relatively low.

Stuart Overell, chief operating officer at 13cabs, said demand for taxis had doubled in recent months with previous ride share users frustrated by extra peak-time charges.

“Passengers are sick of getting ripped off and just want a guaranteed price,” Mr Overell said.

“With ride share, passengers often pay three-to-five times the price they were initially quoted depending on demand at that time with prices surging like a rollercoaster.”

“We got a lot of feedback, especially during December, they were saying it’s permanently surging.

“They were coming back to the 13cabs app to get the price guarantee … they were booking with confidence to know what (the price) is going to be.”

Growing confidence has been similarly felt by cabbies themselves, who Mr Overell said were buoyed by high customer demand.

“There’s definitely some excitement in the driving community that taxis are back; the confidence is back in the industry,” he said.

“They’re talking about, ‘This is back to the old days of making a living as a cabbie’.”

Mr Overell added that the rediscovered consistency on offer could even lure Uber drivers to switch to their taxi competitors.

“(There is) more consistent work across more of the day. We don’t rely on peaks,” he said.

Uber told the Herald Sun it had also experienced significant post-lockdown demand which drove up prices at peak times, but maintained there was always transparency in its fares.

“The Uber app provides riders certainty about the cost of their rides on our platform,” a spokesperson said.

“In situations of increased demand riders are still given an upfront price before they request their ride, giving them the freedom to decide if they want to use the platform or choose another transportation option.”

Uber also recently launched ‘Reserve’ in an effort to counter its surcharge problem in the midst of spiking demand.

Reserve, found on the homepage of the Uber app, allows riders to ‘lock in’ a price that cannot be moved by rising surcharges.