UberX 'half the cost of taxi'
Controversial ride-sharing company Uber has slashed the price of its no frills transport offering by 20 per cent and claims its UberX service is now as cheap as half the cost of a taxi.
Uber used a blog post to announce the price cut on Thursday, putting a renewed focus on the Barnett Government’s inability to rein in a service that Transport Minister Dean Nalder described on its launch 6 months ago as “not a legal service”.
UberX, pitched as a “low cost” service, sees ordinary four-door passenger vehicles like a Toyota Camry or Honda Civic driven by Uber “partner drivers”, effectively contractors who have passed the company’s security screening process, which includes a police clearance and obtaining an F (bus or small charter vehicle) or T (taxi) extension to a WA driver’s licence.
The company claims a journey to the Perth CBD could cost as little as $13 from Nedlands, $14 from Applecross, $9 from Mt Lawley and $22 from Perth airport.
According to information published on its website, Uber charges a $2.25 flagfall and $1.10 per kilometre.
Swan Taxis, which dispatches about 90 per cent of Perth’s taxis, has a $4.20 flagfall from Monday-Friday 6am-6pm and $6.10 outside those times and on public holidays, plus $1.72 per kilometre. Swan also charges a $1.50 call out fee for taxis booked by phone, website or app; and a $3.60 ultra peak surcharge between midnight and 5am on Friday and Saturday nights.
By law, maximum fare schedules for taxis are approved by the State Government, but Uber has refused to engage in that process.
During periods of peak demand, Uber engages in what it calls “surge pricing”, which could see the standard fare more than double.
UberX cars are not licenced under the Department of Transport’s taxi regime and are not fitted with security cameras, as taxis are required to be.
State Parliament was told last month that 42 UberX drivers have been ordered to produce information to the Department of Transport but zero cautions or infringements have been issued.
Transport’s general manager of passenger services Aaron de Rozario said the department was conducting a “comprehensive investigation” and it would not be appropriate to comment on the status of the investigation while it was ongoing.
“The DoT reminds people that carrying fare-paying passengers in a vehicle that is not licensed to do so, is an offence,” he said.
Transport Minister Dean Nalder refused to comment directly on Uber’s pricing changes, but said the Government would release a green paper on the future of “on-demand transport” later this year.
Shadow transport minister Ken Travers said the average taxi had more than $400 a week of on-costs, including taxi licence fees that Uber was avoiding.
“The Government needs to tell us what their plans are for Uber, they’ve still got a confused message, “he said. “There needs to be a level playing field, they need to be talking to the industry today, not leaving it for another six months.”
Taxi Council of WA chief executive Joanna Lockyer said “unlawful operators” might drop prices one day but increase them dramatically the next.
“People have a choice but at least with taxis their choice is based on consistency and regulation, set fares like you would get catching a bus or a train,” she said.
