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Uber driven by fuel crisis to fresh price hike

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Source : Perth Now news

Aussies will cop a fresh hike in the cost of Uber rides after the firm announced a new temporary surcharge.

Less than a month after a price review led to a six per cent increase, the rideshare firm has announced a short-term measure to help drivers battling the fuel price crisis.

From Wednesday, it will be charging customers a surcharge of five cents per kilometre – on top of March’s price hike.

Union bosses say this move will help ease to struggles of drivers during soaring fuel prices – estimating it could be worth around $35 each time they have to head to the bowser.

Camera IconMichael Kaine, national secretary of the TWU NewsWire / Flavio Brancaleone Credit: News Corp Australia

Michael Kaine, national secretary of the Transport Workers’ Union of Australia, said: “What we are seeing is rideshare drivers are in the same boat as anybody else working in transport – they are spending around $40 to $50 extra per go when they are filling up.

“We hope that this surcharge will really make a big difference to them.”

The TWU has been working alongside firms like Uber and competitor Didi to help ease the issues drivers are facing in light of soaring fuel prices.

Didi had already announced an identical surcharge to Uber’s, but the latter will come into effect this Wednesday.

Mr Kaine added: “Customers are very much aware of the increasing fuel costs as they will be affected by it in their everyday lives too.

“They have grown used to the convenience of being able to log into an app and a driver appear as if by magic – I think they will understand the pressures drivers are facing so will want to see them properly remunerated.

“If they have to pay a little bit more to keep that convenience, I think they will be understanding of why.”

Uber joined Didi in introducing a surcharge. Picture: NewsWire / Jenny Evans
Camera IconUber joined Didi in introducing a surcharge. NewsWire / Jenny Evans Credit: News Corp Australia

Emma Foley, managing director of Uber Australia, said: “Uber and the TWU have been working closely together to address rising fuel costs for drivers.

“Following constructive discussions, Uber will introduce a temporary fuel surcharge to provide driver partners temporary relief in response to the current fuel crisis.

“This measure builds on the national fare update Uber introduced in March, which increased drivers earnings across Australia, and reflects Uber’s continued focus on improving driver earnings.”

The surcharge, which is a temporary emergency measure, will be in effect until June 8 this year.