The Popular and affordable UberX has increased their minimum fare as of 31 July 2018, The price inflation has increased the fare for all UberX rides from a minimum of R20 to R25.
The recent price hikes can be attributed to the recent increases in petrol over the past months, sending the price over R16 per litre. Although the recent petrol increase on Wednesday was minimum, it still marks the fifth increase this year.
The petrol hikes have placed pressure on Uber drivers as it is making it harder for drivers to keep their vehicles on the road.
The increase will not affect all trips starting in Soweto as it remain at R20, while Port Elizabeth UberGo minimum fair will increase from R17 to R20.
Uber shared, “Even with this small increase, Uber remains one of the most affordable and efficient ways to get around your city. You will still enjoy the reliable service you have come to expect from us.”
Uber drivers went on strike in Cape Town in June as they were disgruntled with the overall net profit they received after each ride. Uber charge each driver a 25% service charge fee when gaining a ride.
During their protests, Uber drivers demanded that the 25% service fee be reduce to 15% , to make way for a more profitable income as they were experiencing more loss than income.
This is indicated in a statement made by an driver to TimesLIVE,” “At this time last year‚ after a hard day’s work and after all expenses such as fuel had been paid‚ I could earn R3‚500 weekly. Now‚ some weeks‚ drivers are barely getting R500 a week‚”
Uber’s alleviation plans
The company is looking at alternative methods to provide an increased income for drivers with the ‘tiered service fee’. The service fee would work when the more trips completed by a driver-partner and the higher the drivers rating, the lower their weekly Uber service fee is.
Uber added, “We are making various changes and improvements to help provide reliable earning opportunities for driver-partners and a reliable service for you‚”
The ride hailing service assures the public that the increase will still make it an affordable option for transport.
“As more drivers look to Uber as an earning opportunity, this small increase will still make it possible for riders to access affordable transport whilst providing profitable earnings for driver-partners,” Uber said.