Uber to slash fares for Aussie customers in move slammed by peak industry bodies

A rideshare giant is set to cut its prices by an average of less than 5 cent in a move that has sparked concerns for driver rights.

Uber is set to slash fares across the country next month but industry professionals say the controversial move will only impact the country’s most “vulnerable” and “underpaid” workers.

In a bid to secure more customers, the rideshare giant revealed on Thursday it would be making changes to fare prices from August, with prices set to decrease on average by less than 5 per cent.

“We will be changing the time and distance rates used to calculate rider fares,” an email to drivers reportedly said.

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

Rideshare giant Uberset to decrease prices by less than 5 per cent next month. Picture: NewsWire / Jenny Evans

“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.”

Transport Workers Union national secretary Michael Kaine slammed the change and said “drivers are once again bearing the brunt of a market that’s been battered by an absence of regulation”.

“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,” he said.

Mr Kaine said rideshare drivers with no rights to minimum wage or other entitlements had been left to wonder how they would pay their bills next month.

The move has sparked concerns for the rights of Australian rideshare drivers. Picture: NewsWire / Sarah Matray

“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.”

But some relief for rideshare drivers in Australia could be on the way.

The Fair Work Legislation Amendment Act 2023 passed through parliament earlier this year will likely change how gig economy workers are classified and therefore paid.

Uber prices set to decrease by an average of less than 5 per cent across the country. Picture: NewsWire / Jeremy Piper

But Mr Kaine said the standards for drivers “continue to spiral while laws get off the ground”.

“The longer it takes for a minimum standards order to be determined, the lower pay and conditions will sink. 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,” he said.

“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.”

An Uber spokesperson said the company reviews their pricing on an “ongoing basis” and have communicated plans to adjust rider shares with drivers.

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

The changes, which are yet to be finalised, will come into effect from August 7.

Originally published as Uber to slash fares for Aussie customers in move slammed by peak industry bodies