Dealhacker: Uber Fares Drop 20% In Queensland

In a bid to be even more competitive on price, Uber is dropping prices in south-east Queensland from today. While the fare drop is being implemented on a trial basis, Uber Queensland’s general manager Sam Bool has said that similar trials have turned up good results in both Melbourne and Perth.

The Brisbane Times has calculated a couple of average fares around Brisbane, saying: “a trip from the city to Southbank that would have cost $10.62 on a quiet Monday afternoon will now cost about $8.50 while a trip to the airport from Toowong, which would have cost about $40, will now cost closer to $30.”

This is what Uber had to say about the cut:

After 22 months in Queensland, Uber has learned that one of the best ways to increase driver-partner earnings is to boost demand for rides. And one of the most effective ways to boost demand is to cut prices for riders.
So today Uber will begin trialling a 20% reduction in uberX prices to get more riders on the road taking more trips, and in turn increase driver-partner earnings.

You might have trouble finding a driver, however, with a number of Uber drivers threatening to strike over the action. While Uber maintains that a drop in prices also increases the amount of riders a driver can pick up in a day, many are still not happy. The Brisbane base fare is now $2, with $1.00 per km and $0.35 per minute rates, compared to Sydney’s $2.50 base fare, and $1.45 per km and $0.40 per minute rates.

[Business Insider]

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