No upfront fares for Uber customers in Australia yet

Peter Terlato 28 June 2016

uber app

Ride-sharing company changing its fare structure.

Uber has begun to offer riders fixed price fares, ditching its estimated pricing structure and use of "surge pricing" during popular events for a more calculated approach.

Uber has been gradually implementing the new system across cities in the US since April, with hundreds of thousands of customers already adopting upfront fares.

The ride-sharing company also rolled out the new fare system in India and expects other major cities and countries to follow in the coming months.

Uber Australia is yet announce if and when this new fare structure will be introduced, but we can expect to see it down under eventually.

Guaranteed fares are calculated by gauging the amount of riders and drivers on the road and the expected time and distance of the trip, including anticipated traffic delays and tolls.

Surge pricing - where fares are multiplied during high demand periods - will still exist, but will be quoted as a fixed rate fare up-front, rather than merely telling customers they'll pay a percentage multiple.

This isn't the first instance in which the ride-sharing company has offered upfront fares.

uberPOOL, which was launched two years ago, matches riders with drivers headed in the same direction. Destinations are required and an actual fare displayed in advance, prior to booking.

uberPOOL is responsible for more than 20% of all Uber rides worldwide.

Taxis are struggling to compete with Uber's commercial dominance. A recent Deloitte Access Economics report found uberX to be almost 20% cheaper than equivalent taxi fares, even when surge pricing was considered.

In late May, Australian taxi payments app Ingogo switched from traditional meter-calculated fares to fixed fare pricing.

If you're interested in becoming an Uber driver, it might help to know approximately how much you can make in an average week. Our UberX income calculator considers all options and provides an hourly, monthly and annual salary breakdown.

Picture: Prathan Chorruangsak / Shutterstock.com

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