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Uber Australia hikes fares and adds booking fee

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Uber driver phone pickup

Fare hikes apply to drivers and passengers in major cities.

Uber has announced it will raise the minimum fare for uberX trips in Australia's biggest cities, plus introduce a new booking fee to help support operational costs.

In a note to drivers, obtained via UberPeople, the internet's largest community for Uber drivers, the ridesharing company said that following recent roundtable discussions with drive-partners it would be increasing the minimum fare paid by passengers.

From 9 June 2017, the minimum fare for uberX trips in Sydney will rise from $8.00 to $8.45. In Melbourne, the lowest charge will swell from $6 to $6.95. This means, after service fees, drivers in Sydney will take home a minimum $6.76 per trip, while those in Melbourne will receive at least $5.21 per journey.

"At the same time, we wanted to let you know that a 55c booking fee is being introduced on all ridesharing trips," Uber said in its statement to drivers.

"This fee is a flat fee added to every trip for riders that will in turn help support Uber's operational costs. The booking fee is included in the rider's fare. In turn, Uber will deduct a booking fee from you. This will not negatively impact the total amount you receive for each trip."

However, the minimum fare hike only applies to customers in major cities and not users in regional areas.

Reacting to the news, one commentator, uberxw, lambasted the company on the UberPeople forum.

"Its the minimum fare. If your trip is not of minimum fare, your income won't change and you will have to pay more GST," the member from Sydney said.

Want to find out if signing up as an uberX driver is worth it? Use our uberX income calculator.

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