Uber Fares to Jump 6 Percent Across Australia Next Week

Uber will lift fares by an average of 6 percent across Australia from next week, the rideshare company announced on Friday.

The increase follows rival DiDi, which introduced a 5 cents per kilometre fuel surcharge earlier this week. Both companies are responding to petrol prices that have risen close to 50 percent since the US-Israel war on Iran disrupted global oil supply.

Uber described the move as a broader pricing adjustment rather than a temporary surcharge. The fare increases will vary across cities and towns depending on time of day. Uber Max, the company's premium vehicle tier, will be excluded from the change.

Driver earnings front and centre

An Uber spokesperson said the additional revenue would flow to driver partners.

From next week, we will be updating Uber fares which will increase driver earnings by an average of 6% across Australia. These changes build on work already underway and reflect our ongoing commitment to better supporting driver earnings over time.

— Uber spokesperson

The company said it would continue investing in its Uber Pro program, which offers drivers discounts on fuel and electric vehicle charging.

Rideshare drivers have been vocal about the fuel squeeze. Jacob Abboud, who has driven for Uber for 11 years, told the ABC he was paying an extra $150 a week for petrol despite driving a hybrid vehicle. Some drivers have publicly stated they would quit unless fares increased.

DiDi moved first

DiDi began charging Australian customers an extra 5 cents per kilometre from Wednesday. The company said the surcharge would be passed on in full to drivers without any service fee deduction.

Dan Jordan, DiDi Australia's head of external affairs, said the company recognised the pressure rising fuel prices were placing on its drivers.

At DiDi, we recognise the ongoing pressure that rising fuel prices are placing on our drivers across Australia, with higher costs at the pump directly affecting their ability to earn on the platform.

— Dan Jordan, DiDi Australia

DiDi had previously introduced a 3 cents per kilometre surcharge in October 2022 when the federal government reintroduced the fuel excise tax. The current surcharge is the highest the company has implemented in Australia.

Gig workers under strain

Unleaded petrol has now surpassed $2.25 a litre in most capital cities, with diesel past $2.65. The price surge has particularly hit gig economy workers who absorb fuel costs directly.

Anita Rosentreter, deputy secretary of Workers First Union, which represents about 1,000 Uber drivers, said the increases had been significant.

It's obviously a really big cost component for drivers, and the increases recently have been significant. They don't have any control over fare prices, so they don't have any ability to, at the other end of it, try and bring in more money to compensate.

— Anita Rosentreter, Workers First Union

A food delivery rider who uses a scooter told the ABC he earned just $140 for 10 hours of work last week. He said gig work no longer made financial sense at current fuel prices.

More price rises expected

DoorDash and Australia Post are among other companies weighing whether to add fuel charges. Several small businesses have already increased delivery fees.

Airlines have also adjusted their pricing in recent days. Qantas raised international fares nearly two weeks ago, and Virgin Australia announced a 5 percent increase on domestic routes this week, citing jet fuel costs that have doubled in recent weeks.

The federal government held a snap national cabinet meeting on Tuesday to address the fuel crisis. Resources Minister Madeleine King announced a new fuel taskforce that would prioritise regional areas as diesel and petrol flow from the national stockpile.

Prime Minister Anthony Albanese compared the economic shock from the Middle East conflict to the COVID-19 pandemic and the Russian invasion of Ukraine. At least 107 NSW fuel stations had run out of diesel as of Friday, while 42 had no fuel at all.