uberX is 20% cheaper than taxis: report

Elizabeth Barry 2 February 2016

Uber is cheaper, faster and creating millions of dollars in consumer benefits a year, the latest Deloitte report shows.

uber still cheaperRidesharing service uberX is just under 20% cheaper than equivalent taxi fares, according to the latest Deloitte Access Economics report. This is true even when surge pricing, the process of raising prices to meet increased demand, is taken into account.

In the Economic effects of ridesharing report, commissioned by Uber, Deloitte found that the savings ranged from 15.01% for Melbourne uberX riders and up to 26.09% for Brisbane riders. Perth and Sydney riders had weighted savings averages of 19.09% and 20.93% respectively.

In a recent analysis by finder.com.au, savings were found to be in the 30-40% range for some uberX trips when compared to hailing a taxi.

The total direct consumer benefit of $81 million per year is deservedly touted, but the noteworthy stats for riders centre around convenience.

Compared to taxis, the average wait time for an uberX was substantially lower. You are likely to wait around 7.79 minutes for a cab, while only 4.46 minutes for an uberX. The Uber app, which allows for tracking and that matches driver partners that are geographically close, assists with reducing waiting times.

Other notable features are based around safety and functionality. The safety issues that have been associated with the taxi industry, for both riders and drivers, have been largely mitigated with technology. The two-way ratings and payment systems reduces anonymity and potential for crime such as fare evasion.

Uber, while only being introduced into Australia in later 2012, is still growing. In the point-to-point transport market, 61% of uberX rides are new. With the recent legalisation of Uber in Sydney and the potential that it has (which has been addressed by the NSW Government) the future looks bright for Australia's ridesharing services.

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