09/04/2015 - 10:03

Uber cuts Perth fares

09/04/2015 - 10:03

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Private driving service Uber has announced it will reduce fares for its budget UberX service in Perth by 20 per cent, making trips with the company up to 50 per cent cheaper than a taxi.

Uber cuts Perth fares
Uber said the price reduction would increase demand.

Private driving service Uber has announced it will reduce fares for its budget UberX service in Perth by 20 per cent, making trips with the company up to 50 per cent cheaper than a taxi.

It follows the Transport Workers Union reportedly announcing a convoy drive to parliament last month to oppose competition to the taxi industry from the company.

Image courtesy of Channel 9.

In an email to its users today, Uber said a trip to Perth Airport from the CBD would now cost about $22, while a trip to Nedlands from the CBD would now cost $13.

The company said splitting the fare three ways would make it roughly the same price as a bus trip.

The move would benefit drivers, Uber said, with increased demand leading to more trips per hour and higher earnings per hour.

When a similar fare decrease took place in Chicago, average hourly revenue increased 12 per cent for drivers, while trips per hour went up 45 per cent.

 

 

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