GoCatch takes on Uber, slashing fares on its ridesharing service by 5 per cent

UBER is no longer the cheapest way to catch a ride home, with a new rival undercutting the ridesharing giant.

GoCatch chief executive Ned Moorfield is taking on Uber.

A PRICE war has erupted between Uber and rival GoCatch, which has slashed off-peak fares on its ridesharing app by five per cent.

The homegrown taxi booking start-up launched its ridesharing arm GoCar in February, initially charging the same base fare as Uber.

“Now we can guarantee that we’re always going to be cheaper,” chief executive Ned Moorfield told news.com.au.

GoCar doesn’t use surge pricing, the unpopular Uber feature that saw users hit with bills for hundreds of dollars to get home on New Year’s Eve.

Instead, it has a straightforward peak and off-peak rate, with peak time prices 45 per cent higher than the base rate, instead of an Uber surge price as much as 250 per cent higher.

“We are focused on providing more choice for passengers and drivers,” Mr Moorfield said.

An off-peak GoCar would cost about $20.57 from Mosman to Martin Place; $27.68 from Bondi to Sydney Airport; or $17.90 from Newtown to Circular Quay.

GoCar vs. Uber.

For the moment, GoCar is only available in Sydney’s CBD, eastern suburbs, lower north shore and inner west, with a growing cohort of more than 1000 drivers.

Mr Moorfield said he had plenty of disgruntled Uber drivers on his books, including those who had been “kicked off the platform with no explanation”.

“They don’t like the way they’ve been dealt with,” he said.

But the main drawcard is a higher pay rate, with GoCar charging drivers a 12 per cent commission against Uber’s 20 per cent (or 25 per cent for new drivers).

GoCar drivers will soon start paying 15 per cent, still substantially lower than Uber’s commission.

Mr Moorfield said GoCar had enjoyed 100 per cent month-on-month growth since its launch, and that the service should begin rolling out nationally by the end of this year.

“Ridesharing is gaining momentum across Australia, and we will continue to work with governments to improve the way people get from A to B,” he said.

GoCar is also luring riders to the app by with a $10 refer-a-friend offer, with a $15 credit available for every new passenger.

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