Ride-sharing service Uber has announced it will again reduce fares for users in Melbourne.
In a statement on March 30, Uber said Melbourne users can expect a 15 per cent cut to all uberX and uberASSIST services, effective immediately.
It’s not all good news, though. This cut will directly affect drivers’ earnings. The Age reported today some drivers have taken to an internet forum to express outrage. Some have even threatened strike action.
UberX is still illegal in Victoria, so because drivers are not unionised, strike action is unlikely.
In its statement Uber said the cuts are an effort to boost rider demand and increase driver earning potential. Following the fare cuts of May last year there was an increase in the use of the uberX service.
In an attempt to keep its drivers on side, Uber says it will subsidise them by guaranteeing a minimum rate of $30 gross per hour, but only until April 25.
The cut will reduce a city to airport trip to approximately $42, which will make it around 30 per cent cheaper than a taxi service (according to a fare estimator).